18. Flax Corp. uses the direct method to prepare its statement of cash flows. Flax's trial balances at December 31, 20X1 and 20X0, are as follows: December 31 Debits 20X1 20X0 Cash $35,000 $32,000 Accounts receivable $33,000 $30,000 Inventory $31,000 $47,000 Property, plant & equipment $100,000 $95,000 Unamortized bond discount $4,500 $5,000 Cost of goods sold $250,000 $380,000 Selling expenses $141,500 $172,000 General and administrative expenses $137,000 $151,300 Interest expense $4,300 $2,600 Income tax expense $20,400 $61,200 $756,700 $976,100 Credits Allowance for uncollectible accounts $1,300 $1,100 Accumulated depreciation $16,500 $15,000 Trade accounts payable $25,000 $17,500 Income taxes payable $21,000 $27,100 Deferred income taxes $5,300 $4,600 8% callable bonds payable $45,000 $20,000 Common stock $50,000 $40,000 Additional paid-in capital $9,100 $7,500 Retained earnings $44,700 $64,600 Sales $538,800 $778,700 $756,700 $976,100 Additional information Flax purchased $5,000 in equipment during 20X1. Flax allocated one-third of its depreciation expense to selling expenses and the remainder to general and administrative expenses. What amounts should Flax report in its statement of cash flows for the year ended December 31, 20X1, for cash paid for goods to be sold? a. 242,500 b. 226,500 c. 257,500 d. 258,500