A company had net income of $245,163. Depreciation expense was $20,638. During the year, accounts receivable and merchandise inventory increased by $17,398 and $35,807, respectively. Prepaid expenses and accounts payable decreased by $2,538 and $7,959, respectively. There was also a loss on the sale of equipment of $7,335. How much was the net cash flows from operating activities on the statement of cash flows using the indirect method?

a. $214,510 b. $273,136 c. $260,148 d. $199,840