An analyst has gathered the following information about a company

Income Statement for the Year 2004 Sales $1,500 Expenses COGS $1,300 Depreciation 30 lnt Expenses 40 Total expenses 1,370 Income from cont op 130 Gain on sale 30 Income before tax 160 Income tax 64 Net Income $96

Additional Information:

Dividends paid $30 Common stock sold 20 Equipment purchased 50 Bonds issued 80 Fixed asset sold for (original cost of $100 with accumulated depreciation of $70) 60 Accounts receivable decreased by 30 Inventory decreased by 20 Accounts payable increased by 20 Wages payable decreased by 10

What is the cash flow from operations?

1. $170

2. $156

3. $135