The retained earnings account has a beginning balance of $325,475 and an ending balance of $357,013. Net income is $40,551. Which of the following statements is correct?

a.$31,538 would be added when determining cash flows from financing activities.

b.$325,475 would be added when determining cash flows from operating activities.

c.$9,013 would be subtracted when determining cash flows from financing activities.

d.$40,551 would be added when determining cash flows from financing activities.