The Farley Company had retained earnings at the beginning of the year totaling $100,000. At the end of the year retained earnings totaled $200,000. Depreciation was $50,000 for the year and the company paid dividends of $150,000. What is the amount recorded as Net Income in the operating activities section of the statement of cash flows prepared using the indirect method?

a. a net loss of $150,000

b. a net income of $150,000

c. a net income of $200,000

d. a net income of $250,000

e. a net loss of $50,000.