Elmore Company uses the direct method to prepare its statement of cash flows

Refer to the following financial statement information for the year ended December 31, 2017:

Elmore Company
Comparative Balance Sheet
December 31, 2017 and 2016
2017 2016 Increase
(Decrease)
Cash $35,900 $19,700 $16,200
Accounts Receivable 26,900 30,100 (3,200 )
Merchandise Inventory 55,200 28,200 27,000
PP&E, net 126,000 92,000 34,000
Total Assets $244,000 $170,000 $74,000

Accounts Payable 9,800 13,800 $(4,000 )
Accrued Liabilities 5,500 1,500 4,000
Long-term Notes Payable 70,700 79,700 $(9,000 )
Total Liabilities $86,000 $95,000 $(9,000 )

Common Stock $55,000 $3,000 $52,000
Retained Earnings 115,000 78,000 37,000
Treasury Stock (12,000 ) (6,000 ) (6,000 )
Total Stockholders' Equity $158,000 $75,000 $83,000

Total Liabilities and Stockholders' Equity $244,000 $170,000 $74,000

Elmore Company
Income Statement
December 31, 2017 and 2016
2017 2016
Sales Revenue $289,400
Interest Revenue 2,900
Gain on Sale of Plant Assets 6,000
Total Revenues and Gains $298,300
Cost of Goods Sold 146,100
Salaries and Wages Expense 49,700
Depreciation Expense-Plant Assets 16,000
Other Operating Expense 23,200
Interest Expense 3,500
Income Tax Expense 7,800
Total Expenses 246,300
Net Income $52,000

Use the direct method, to compute the total net cash flow from operating activities. (Accrued Liabilities relate to other operating expense.)
A) $(54,200 )
B) $38,200
C) $(38,200 )
D) $54,200

B .B)