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. $$\begin{array} { l| l } \text { Cost d goods sold } \ldots \ldots \ldots \ldots \ldots \ldots \ldots \ldots \ldots \ldots & \$ 500,000 \\\hline \text { Merchandise inventory. January } 1 \ldots \ldots \ldots \ldots \ldots \ldots & 8 5 , 0 0 0 \\\hline \text { Mer chandise inventory. December } 31 \ldots \ldots \ldots \ldots \ldots & 97,000 \\\hline \text { Accounts payable, January } 1 \ldots \ldots \ldots \ldots \ldots \ldots \ldots \ldots & 68,000 \\\hline \text { Accounts payable, December } 31 \ldots \ldots \ldots \ldots \ldots \ldots & 60,000\end{array}$$

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