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

Multiple Choice

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

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