A Company's Inventory Balance at the End of the Year

Multiple Choice

A company's Inventory balance at the end of the year was $188,000 and $200,000 at the beginning of the year. Its Accounts Payable balance at the end of the year was $84,000 and $80,000 at the beginning of the year, and its cost of goods sold for the year was $720,000. The company's total amount of cash payments for merchandise during the year equals:

A) $720,000.
B) $736,000.
C) $712,000.
D) $728,000.
E) $704,000.