A cash equivalent is:

Options:

	An investment readily convertible to a known amount of cash.
	Close to its maturity date but its market value may still be affected by interest rate changes.
	Generally is within 12 months of its maturity date.
	Is not considered highly liquid.
	Another name for cash.

A company's Inventory balance at 12/31/16 was $188,000 and $200,000 at 12/31/15. Its Accounts Payable balance at 12/31/16 was $84,000 and $80,000 at 12/31/15, and its cost of goods sold for 2016 was $720,000. The company's total amount of cash payments for merchandise in 2016 equals:

Options:

	$704,000.
	$712,000.
	$720,000.
	$728,000.
	$736,000.