Accounts receivable from sales transactions were $51,000 at the beginning of the year and $64,000 at the end of the year. Net income reported on the income statement for the year was $105,000. Exclusive of the effect of other adjustments, the cash flows from operating activities to be reported on the statement of cash flows prepared by the indirect method would be

A) $105,000
B) $118,000
C) $92,000
D) $169,000

Cash Flows

Represents the movement of money into and out of a business or financial entity, indicating its liquidity, financial health and ability to generate cash.

Operating Activities

Activities related to the primary revenue-generating operations of a company, often involving the production and delivery of goods and services.

Net Income

The total earnings of a company after all expenses and taxes have been deducted from gross sales.