Total operating expenses on Opal Company's income statement for last year totaled $350,000. During the year, the accrued liabilities decreased by $15,000 and prepaid expenses increased by $10,000. Depreciation expense for the year was $20,000. Based on this information, operating expenses adjusted to a cash basis under the direct method on the statement of cash flows would be:

a.$355,000.

b.$195,000.

c.$145,000.

d.$230,000.