The financial statements of New World, Inc., provide the following information for the current year:

	Dec. 31	Jan. 1
Accounts receivable	$ 289,000	$ 401,500
Inventory	$ 282,500	$ 268,000
Prepaid expenses	$ 73,600	$ 71,000
Accounts payable (for merchandise)	$ 261,300	$ 253,550
Accrued expenses payable	$ 66,150	$ 80,450
Net sales	$ 3,177,500
Cost of goods sold	$ 1,675,500
Operating expenses (including depreciation of $65,000)	$ 383,500

New World's net cash flow from operating activities for the current year is:

$1,272,350.

$1,605,150.

$1,607,750.

$1,337,350.