Baton Rouge Corporation Presented Here Are Cash Flows (In

Multiple Choice

Baton Rouge Corporation Presented here are cash flows (in $ Millions) for Baton Rouge Corporation's most recent fiscal year:
$\begin{array}{lrr}\underline{\text { Cash received from: }}\\ \text { Customers } &\$3,600\\ \text { Interest on investments } &700\\ \text { Sale of old equipment } &4,100\\ \text { Sale of company's capital stock } &490\\ \text { Long-term debt proceeds} &2,200\\\end{array}$


$\begin{array}{lr}\underline{\text { Cash paid for: }}\\\text { Interest on debt } & \$ 395 \\\text { Income tax } &210 \\\text { Principal payments on debt } & 1,400 \\\text { Purchase of building } &1,100 \\\text { Purchase of inventory } & 1,400 \\\text { Dividends on capital stock } & 350 \\\text { Operating expenses } &770\end{array}$
Net cash flows from operating activities (direct method) are ________.

A) $825
B) $1,525
C) $1,735
D) $1,920