Reference no: EM132617572

The 2020 accounting records of Outdoor Adventures Ltd reveal the following transactions and events.

Payment of interest             $15,000

Cash sales                           60,000

Receipt of dividend revenue    14,000

Payment of income tax          16,000

Profit                                     38,000

Payment of accounts payable for inventory    100,000

Payment for land                                      74,000

Collection of accounts receivable           $190,000

Payment of salaries and wages                 68,000

Depreciation expense                           16,000

Proceeds from sale of aircraft                812,000

Purchase of equipment for cash                22,000

Loss on sale of aircraft                           3,000

Payment of dividends                               14,000

Payment of operating expenses                     20,000

Problem 1: What is the cash flow from operating activities section of the statement of cash flows using the direct method. (Not all of the items will be used.)

Select one:

a. $45,000

b. $29,000

c. -$145,000

d. $31,000