Lator Company Reported Net Income of $120,000 for the Year

Lator Company reported net income of $120,000 for the year ended December 31, 2012. During the year, inventories decreased by $18,000, accounts payable decreased by $27,000, depreciation expense was $30,000 and a loss on disposal of equipment of $13,500 was recorded. Net cash provided by operations in 2012 using the indirect method was:

A) $208,500.
B) $127,500.
C) $115,500.
D) $154,500.