The following transactions were under review to determine their effect on the company's statement of cash flows.

- $450,000 loss on the sale of fixed assets

- $300,000 received on the sale of long-term securities

- $25,000 increase in unearned revenue

- $24,000,000 revenue received from customers

- $900,000 cash dividends paid to common stockholders

- $60,000 insurance proceeds received from storm damage to warehouse

- $15,000,000 cash paid to vendors for raw materials

- $4,000,000 paid to acquire a local business

$1,600,000 wages paid to employees

The total amount from the above items used to determine the company's operating cash flow under the direct method is:

a. $6,585,000

b. $6,975,000

c. $7,485,000

d. $7,760,000