Below is an example of an incorrectly prepared statement of cash flows. The descriptions of activities are correct.

Net income	$60,000
Depreciation	(4000)
Increase in accounts receivable	(2000)
Increase in deferred tax liability	(1000)
Cash from operating activities	$53,000
Purchase of marketable securities	($48,000)
Dividends paid	1,500
Cash from investing activities	($46,500)
Increase in short term debt	$(500)
Increase in long term debt	(2,500)
Cash from financing activities	($3,000)
Increase in cash	$3,500

1. The correct cash flows from operating activities is:

a. 65,500

b. 63,500

c. 53,500

d. None of the above

2. The correct cash flows from investing activities is:

a. (41,000)

b. (45,500)

c. (48,000)

d. None of the above

3. The correct cash flows from financing activities is:

a. (4,500)

b. 3,000

c. 1,000

d. None of the above