The Following Items Were Reported on the Balance Sheets and Income

Multiple Choice

The following items were reported on the balance sheets and income statement for Centerton Inc., a service company: $\begin{array}{lr}\text { Accounts payable, December 31, 2016 } & \$ 64,000 \\\text { Accounts payable, December 31, 2017 } & 48,000 \\\text { Operating expenses-2017 } & 170,000\end{array}$ What amount would be reported in the operating activities section of the statement of cash flows for payments for operating expenses under the direct method?

A) $186,000
B) $154,000
C) $180,000
D) $170,000