Donnegan Company Reported Operating Expenses of $325,000 for 2015 On a Statement of Cash Flows for 2015, Using the Following

Multiple Choice

Donnegan Company reported operating expenses of $325,000 for 2015. The following data were extracted from the company's financial records: $\begin{array}{lrr}&12 / 31 / 14&12 / 31 / 15\\\text { Prepaid Expenses } & \$ 60,000 & \$ 69,000 \\\text { Accrued Expenses } & 210,000 & 255,000\end{array}$ On a statement of cash flows for 2015, using the direct method, cash payments for operating expenses should be

A) $379,000.
B) $361,000.
C) $289,000.
D) $271,000.