The retained earnings account has a beginning balance of $328,475 and an ending balance of $357,613. Net income is $40,851. Which of the following statements is correct?

$11,713 would be subtracted when determining cash flows from financing activities.

$29,138 would be added when determining cash flows from financing activities.

$40,851 would be added when determining cash flows from financing activities.

$328,475 would be added when determining cash flows from operating activities.