Use the Following Information About the Current Year's Operations of a Company

Use the following information about the current year's operations of a company to calculate the cash paid for merchandise. $$\begin{array} { l r } \text { Cost of goods sold } & \$ 500,000 \\\text { Merchandise inventory, January 1 } & 85,000 \\\text { Merchandise inventory, December 31 } & 97,000 \\\text { Accounts payable, January 1 } & 68,000 \\\text { Accounts payable, December 31 } & 60,000\end{array}$$

A) $585,000.
B) $520,000.
C) $480,000.
D) $508,000.
E) $512,000.

Correct Answer:

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