Rachel's Recordings reported net income of $300,000. Beginning balances in accounts receivable and accounts payable were $17,000 and $23,000 respectively. Ending balances in these accounts were $13,500 and $29,000, respectively. Assuming that all relevant information has been presented, Rachel's cash flows from operating activities would be:

$290,500.

$303,500.

$300,000.

$309,500.