A company had net income of $297,919. Depreciation expense was $23,084. During the year, accounts receivable and merchandise inventory increased by $18,066 and $27,640, respectively. Prepaid expenses and accounts payable decreased by $2,343 and $5,274, respectively. There was also a loss on the sale of equipment of $5,623. How much was the net cash flows from operating activities on the statement of cash flows using the indirect method?

a. $319,983

b. $326,626

c. $277,989

d. $266,743