Workman Smith Company s comparative balance sheets included inventory of 120 000 on
Workman-Smith Company’s comparative balance sheets included inventory of $120,000 on December 31, 2008, and $110,000 on December 31, 2009. Workman-Smith’s comparative balance sheets also included accounts payable of $60,000 on December 31, 2008, and $55,000 on December 31, 2009. Workman-Smith’s accounts payable balances are composed solely of amounts due to suppliers for purchases on inventory. Cost of goods sold, as reported by Workman-Smith on its 2009 income statement, amounted to $850,000.

Required
What is the amount of cash payments for inventory that Workman-Smith should report in the Operating Activities section of its 2009 statement of cash flows, assuming that the direct method is used?

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