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Let's Do This, Inc. had an operating income of $35,000 for the year just ended. Balances in the company's current asset and current liability accounts

Let's Do This, Inc. had an operating income of $35,000 for the year just ended. Balances in the company's current asset and current liability accounts at the beginning and of the year were as follows:

beginning ending
cash $30,000 $40,000
accounts receivable $125,000 $106,000
inventory $213,000 $180,000
accounts payable $210,000 $195,000

The company reported $350,000 in Sales Revenue and a Gross Profit of $140,000. Depreciation expense totaled $8,000. Using the direct method, compute the company's cash flow from operating activities for the year. (assume only inventory purchases are included in accounts payable)

A.

$51,000

B.

$87,000

C.

$177,000

D.

$80,000

E.

$125,000

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