Tracy Company reports the following in its statement of cash flows:

Net Income $1,000

Depreciation 350

Decrease (Increase) in accts. rec. (10)

Decrease (Increase) in inventory 200

Decrease (Increase) in prepaid exp. 80

Decrease (Increase) in trade payables (300)

Decrease (Increase) in taxes payable 75

Cash flow from operations $1,395

Tracy used the indirect method of determining cash flow from operations (CFO). If it had used the direct method:

a. CFO would have been lower as losses and depreciation are not added back in arriving at CFO.

b. it is not possible to determine what CFO would have been without more information.

c. CFO would have been higher as gains are not deducted in arriving at CFO.

d. CFO would have been the same.