Answer:
d. $165,000
Explanation:
Basically there are three types of activities:
1. Operating activities: It includes those transactions which affect the working capital, and it records transactions of cash receipts and cash payments.
2. Investing activities: It records those activities which include purchase and sale of the fixed assets
3. Financing activities: It records those activities which affect the long term liability and shareholder equity balance.
The computation is shown below:
Cash flow from Operating activities
Net income $150,000
Add: Decrease in accounts receivable $15,000 ($65,000 - $80,000)
Net Cash flow from Operating activities $165,000
