Toro Company Recognized $655,000 of Cost of Goods Sold in 2006

Multiple Choice

Toro Company recognized $655,000 of cost of goods sold in 2006, in addition its implementation of a just-in-time inventory system allowed it to reduce its inventory from $325,000 at the beginning of the year to $230,000 at the end of 2006. How much cash did Toro spend for inventory in 2006?

A) $655,000
B) $980,000
C) $560,000
D) $620,000