CPA-79518 (F-10-05: Fund Financial Statements) Durban Township's Water and Sewer Fund had $40,000 in operating income and a total change in net assets of 150,000. The Water and Sewer Fund also had the following transactions either derived from a comparison of current and prior year Statements of Net Assets or displayed on the current year Statement of Activities: Increase in current assets other than cash including amounts due from other funds for water services $ 30,000 Increase in current liabilities including the current portion of bonded indebtedness of $25,000 50,000 Depreciation expense 70,000 Gain on disposal of fixed assets 2,000 Cash flows from operating activities would reconcile to what amount?

$105,000

$107,000

$130,000

$242,000

Please explain each step and why please