Use the following information to answer parts A and B.
Sales $755,000
COGS 543,000
Gross profit 212,000
Depreciation 20,000
Other operating Expenses 121,000
Operating income 71,000
Loss on disposal of Assets 5,000
Pretax Income 66,000
Income taxes $40,000
Additional Information:
Accounts receivable increased by 10,000 during the year
inventory decreased by 30,000 during the year
Property Plant and Equipment increased by 15,000
Accounts payable increased by 24,000
Other accrued liabilities decreased by 13,000
Debt (long and short) increased by 25,000
Equity increased by 5,000
A. Prepare a reconciliation of Net income cash flow from operating activities
B. Based solely on above how much cash was paid for merchandise inventory during the year?