Tanglewood, 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, 2018:

Tanglewood, Inc.

Comparative Balance Sheet

December 31, 2018 and 2017

	2018	2017	Increase (Decrease)
Cash	$35,200	$15,200	$20,000
Accounts Receivable	29,200	36,200	(7,000)
Merchandise Inventory	53,600	26,600	27,000
PP&E, net	126,000	92,000	34,000
Total Assets	$244,000	$170,000	$74,000
Accounts Payable	8,900	12,900	$(4,000)
Accrued Liabilities	6,100	2,100	4,000
Longminusterm Notes Payable	71,000	80,000	$(9,000)
Total Liabilities	$86,000	$95,000	$(9,000)
Common Stock	$55,000	$3,000	$52,000
Retained Earnings	115,000	78,000	37,000
Treasury Stock	(12,000)	(6,000)	(6,000)
Total Stockholders' Equity	$158,000	$75,000	$83,000
Total Liabilities and Stockholders' Equity	$244,000	$170,000	$74,000

Tanglewood, Inc.

Income Statement

December 31, 2018

Sales Revenue	$289,900
Interest Revenue	2,400
Gain on Sale of Plant Assets	6,000
Total Revenues and Gains		$298,300
Cost of Goods Sold	148,700
Salaries and Wages Expense	46,600
Depreciation Expenselong dashPlant Assets	16,000
Other Operating Expense	23,700
Interest Expense	3,500
Income Tax Expense	7,800
Total Expenses		246,300
Net Income		$52,000

Use the direct method to compute the payments to suppliers for Merchandise Inventory and other operating expenses. (Accrued Liabilities relate to other operating expense.)

A.

$199,400

B.

$19,700

C.

$203,400

D.

$179,700