The Cost of Merchandise Sold During the Year Was $50,000

Multiple Choice

The cost of merchandise sold during the year was $50,000. Merchandise inventories were $12,500 and $10,500 at the beginning and end of the year, respectively. Accounts payable were $6,000 and $5,000 at the beginning and end of the year, respectively. Using the direct method of reporting cash flows from operating activities, cash payments for merchandise total

A) $49,000
B) $47,000
C) $51,000
D) $53,000