The following selected account balances appeared on the financial statements of the Washington Company:
Accounts Receivable, Jan. 1 $13,000
Accounts Receivable, Dec. 31 9,000
Accounts Payable, Jan 1 4,000
Accounts payable Dec. 31 7,000
Merchandise Inventory, Jan 1 10,000
Merchandise Inventory, Dec 31 15,000
Sales 56,000
Cost of Goods Sold 31,000
The Washington Company uses the direct method to calculate net cash flow from operating activities.
Cash paid to suppliers is
1. $29,000
2. $33,000
3. $23,000
4. $39,000