Avatar Company Uses the Direct Method to Prepare Its Statement

Multiple Choice

Avatar Company uses the direct method to prepare its statement of cash flows. Please refer to the following information reported for the year 2014:
$\begin{array}{ll}\text { Operating expenses } & \$ 23,000 \\\text { Accrued liabilities beginning balance: } & \$ 1,000 \\\text { Accrued liabilities ending balance: } & \$ 2,000\end{array}$
What amount was paid to suppliers for operating expenses on a cash basis?

A) $26,000
B) $20,000
C) $22,000
D) $24,000