The net income reported on the income statement for the year was $55,000, and depreciation of fixed assets for the year was $22,000. The balances of the current asset and current liability accounts at the beginning and end of the year are as follows:

The total amount reported for cash flows from operating activities on the statement of cash flows using the indirect method is:

a. $33,000.

b. $55,000.

c. $65,500.

d. $77,000.

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Cash Accounts receivable Inventories Prepaid expenses Accounts payable (merchandise creditors) End of Year $ 65,000 100,000 145,000 7,500 51,000 Beginning of Year $ 70,000 90,000 150,000 8,000 58,000