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: $\begin{array}{lr}\text { Accounts payable, December } 31,2017 & \$ 64,000 \\\text { Accounts payable, December } 31,2018 & 48,000 \\\text { Operating expenses-2018 } & 170,000\end{array}$ 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