The Income Statement of a Company showed Revenues Earned from Consulting Fees totaling $180,000 during the current year. The comparative balance sheet indicates Unearned Consulting Fees of $52,500 at the beginning of the year and $45,000 at the end of the year respectively. If the Direct Method is used to prepare the statement of Cash Flows, The amount of Cash inflow from Consulting Fees that would be reported in the operating activities section of the statement of cash flows would be?

a. $172,500
b. $187,500
c. $180,000
d. $7,500

Answer: a. $172,500