52. What were cash receipts from sales for the year, using the direct method?

A. 825,000

B. 890,000

C. 955,000

D. 785,000

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

A. 647,000

B. 600,000

C. 670,000

D. 640,000

54. What was the amount of cash payments for operating expenses this year, using the direct method?

A. 70,000

B. 150,000

C. 97,000

D. 86,000

55. What was the amount of cash payments for taxes this year, using the direct method?

A. 24,500

B. 22,000

C. 20,500

D. 16,500

Use the following information for questions 52 - 55: Income Statement for the year: Sales $890,000 Cost of Goods Sold 635,000 Gross Profit $255,000 Operating Expenses 120,000 Net Income before Taxes $135,000 Taxes 20,500 Net Income $114,500 Account Balance Changes during the year: Inventory increase Accounts Receivable increase Additions to Accumulated Depreciation Prepaid expenses decrease Accounts Payable for inventory increase Accrued liabilities (e.g., Wages Payable) decrease Taxes Payable decrease $20,000 $65,000 $40,000 $2,000 $15,000 $8,000 $4,000