Toro Company recognized $655,000 of cost of goods sold in 2010, in addition its implementation of a just-in-time inventory system allowed it to reduce its inventory from $325,000 at the beginning of the year to $230,000 at the end of 2010 . How much cash did Toro spend for inventory in 2010?
a. $655,000
b. $980,000
c. $560,000
d. $620,000
C
$655,000 + $230,000 - $325,000 = $560,000
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