Problem:
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.
Required:
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 is
a. $118,000
b. $105,000
c. $169,000
d. $92,000
Note: Please provide full description.