An analyst compiled the following information for Universe, Inc. for the year ended December 31, 20X4:
- Net income was $850,000.
- Depreciation expense was $200,000.
- Interest paid was $100,000.
- Income taxes paid were $50,000.
- Common stock was sold for $100,000.
- Preferred stock (eight percent annual dividend) was sold at par value of $125,000.
- Common stock dividends of $25,000 were paid.
- Preferred stock dividends of $10,000 were paid.
- Equipment with a book value of $50,000 was sold for $100,000.
Using the indirect method and assuming U.S. GAAP, what was Universe Inc.’s cash flow from operations (CFO) for the year ended December 31, 20X4?
A. $1,000,000.
B. $1,050,000.
C. $1,015,000.
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