The following information is available from the financial statements of Barrel Corporation for the year ended December 31:

Net Income$260,000

Increase in Accounts Payable$5,000

Depreciation Expense$10,000

Payment of Dividends$2,500

Decrease in Accounts Receivable$7,500

Increase in Inventories$5,000

Decrease in Income Taxes Payable$10,000

What are Barrel Corporation's cash flows from operating activities?

Select one:

A.$265,000

B.$267,500

C.$272,500

D.$257,500