Reference no: EM132768520

Question - The following Income Statement and account balance changes apply to questions:

Income Statement for the year:

Sales $900,000

Cost of Goods Sold 430,000

Gross Profit $470,000

Operating Expenses 250,000

Net Income before Taxes $220,000

Taxes 35,000

Net Income $185,000

Account Balance Changes during the year:

Inventory increase? $78,000

Accounts Payable for inventory increase? $24,000

Accounts Receivable increase $63,000

Depreciation increase $74,000

Prepaid expenses decrease $3,000

Accrued liabilities (e.g., Wages Payable) decrease $14,000

Taxes Payable decrease $10,000

Required - What was the amount of cash payments made during the year for inventory purchases, using the direct method?