UMB Bank reviewing loan application of Papri, Inc. Zaman was wondering whether Papri, Inc.$$s cash flow from operation is strong enough to approve $$5,000,000$ business loan.

Exhibit $3$

Papri, Inc.

Selected data as of December $31$

$2022$

$2023$

Cash receipts of dividends

$$100$

$$115$

Purchases of inventories

$1,200$

$1,380$

Dividends paid to stockholders

$500$

$575$

Cash payment of interest

$300$

$345$

Proceeds from new bank loan

$1,500$

$1,725$

Proceeds from sale of equipment

$275$

$316$

Purchase of building

$2,500$

$2,875$

Collections from customers

$3,000$

$3,450$

Retirement of debt

$750$

$863$

Cash payments of expenses

$500$

$575$

Exhibit $4$

Papri, Inc.

Selected data as of December $31$

$2022$

$2023$

Sales

$$1,830$

$$2,008$

Cost of goods sold

$$1,200$

$$1,380$

Depreciation

$150$

$173$

Interest expense

$75$

$86$

Gain on sale of old machine

$10$

$12$

Taxes

$45$

$52$

Net Income

$547$

$329$

Increase in accounts receivable

$85$

$102$

Decrease in inventory

$60$

$72$

Increase in accounts payable

$35$

$42$

Using Exhibit $4,$ Zaman calculated the cash flow from operation $($CFO$)$ using the indirect method of cash flow for $2023$ close to:

A$.$

$$502$

B$.$

$$679$

C$.$

$$697$

D$.$

$$520$