The Cost of Merchandise Sold During the Year Was $45,000

Multiple Choice

The cost of merchandise sold during the year was $45,000. Merchandise inventories were $13,500 and $10,500 at the beginning and end of the year, respectively. Accounts payable were $7,000 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) $46,000
B) $44,000
C) $50,000
D) $40,000