7. Ogden Company uses its accounts payable account only for inventory purchases. The following account balances were reported on its financial statements:

Accounts	December 31, 2018	December 31, 2017
Merchandise inventory	$70,000	$66,000
Accounts payable	68,000	65,000
Cost of goods sold	889,000	856,000

How much cash did Ogden Company pay to suppliers during 2018?

a. $887,000

b. $890,000

c. $896,000

d. $34,000

8. Kingston Jerk Factory reported the following results for 2017:

Category	December 31	January 1
Property, plant, and equipment	$420,000	$405,000
Accumulated depreciation	(189,000)	(180,000)
Net property, plant, and equipment	$231,000	$225,000

During 2017, the company sold equipment that had an original cost of $39,000 and accumulated depreciation of $31,000 for $13,000. New equipment was purchased for cash during the year. How much gain/(loss) will Kingston add or subtract from net income when preparing the operating activities section of the statement of cash flows using the indirect method for 2017?

Group of answer choices

a. Subtract $5,000

b. Add $2,000

c. Subtract $26,000

d. There is not enough information provided to answer this question