[The following information applies to the questions displayed below.]Erie Company reports the following comparative balance sheets and income statement information for the current year. Comparative Balance Sheets Beginning of Year End of YearAssetsCash $88,000 $48,000Accounts receivable 32,000 16,000Prepaid insurance 32,000 40,000 Inventory 8,000 24,000Property, plant & equipment 40,000 48,000Total Assets $200,000$176,000 Liabilities and Stockholder's Equity Accounts payable $48,000 $32,000 Salaries payable 16,000 40,000 Long-term notes payable 24,000 32,000 Common stock20,000 20,000Retained earnings 92,000 52,000Total Liabilities and Stockholders' Equity $200,000 $176,000 Income StatementRevenue $280,000Cost of goods sold (160,000)Gross
margin 120,000 Operating expenses (80,000)Net income $40,000Assuming accounts payable is used for inventory purchases only, what was the amount of cash paid for inventory purchases during the year?
A. $192,000
B. $160,000
C. $176,000
D. $32,000
Answer: A
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