McDaniel, Inc. uses the direct method to prepare its statement of cash flows. Refer to the following financial statement information for the year ended December 31, 2017: McDaniel, Inc. Comparative Balance Sheet December 31, 2017 and 2016 Cash Accounts Receivable Merchandise Inventory PP&E, net Total Assets 2017 $36,000 28,700 53,300 126.000 $244.000 Increase 2016 (Decrease) $16,000 $20,000 35,700 (7,000) 26,300 27.000 92.000 34.000 $170.000 $74.000 O A. $23,300 O B. 548,400 OC. $44,400 OD. $71,700 Click to select your answer. MacBook Air Accounts Payable Accrued Liabilities Long-term Notes Payable Total Liabilities 9,500 7.000 69,500 $86,000 13,500 3,000 78,500 $95,000 $(4,000) 4,000 (9,000) $(9,000) Common Stock Retained Earnings Treasury Stock Total Stockholders' Equity $55,000 115,000 (12,000) $158,000 $3,000 78,000 (6.000) $75,000 $52,000 37,000 (6,000) $83,000 Total Liabilities and Stockholders' Equity $244,000 $170,000 $74,000 MacBook Air McDaniel, Inc. Income Statement December 31, 2017 $289,800 2,500 6,000 $298,300 Sales Revenue Interest Revenue Gain on Sale of Plant Assets Total Revenues and Gains Cost of Goods Sold Salaries and Wages Expense Depreciation Expense-Plant Assets Other Operating Expense 147,300 48,400 16,000 23,300 MacBook Air 142,00 48,400 16,000 23,300 Cost of Goods Sold Salaries and Wages Expense Depreciation ExpensePlant Assets Other Operating Expense Interest Expense Income Tax Expense Total Expenses Net Income 3,500 7,800 246,300 $52,000 Use the direct method to compute the payments made to employees. (Accrued Liabilities relate to other operating expense.) O A. $23,300 O B. $48,400 O c. $44,400 OD. $71,700 Click to select your