Newark Company has provided the following information:

Cash sales, $450,000

Credit sales, $1,350,000

Selling and administrative expenses, $330,000

Sales returns and allowances, $90,000

Gross profit, $1,360,000

Increase in accounts receivable, $55,000

Bad debt expense, $33,000

Sales discounts, $43,000

Net income, $1,030,000

How much cash was collected from customers?

Select one:

a. Cash flow increased $1,745,000.

b. Cash flow increased $1,295,000.

c. Cash flow increased $1,405,000.

d. Cash flow decreased $1,855,000.