Bernie's Ltd.
Income Statement
For the Year ended December 31, 20X5
Income:
Sales	682,000
Dividends	22,000
Interest	29,000
Gain on sale of PPE (Property Plant & Equipment)	19,000
Total income	752,000
Expenses:
Cost of goods sold	360,000
Depreciation	43,000
Wages	134,000
Interest	38,000
Other expenses	41,000
Total expenses	616,000
Net income before income tax expense	136,000
Income tax expense	36,000
Net income after income tax expense	100,000

Additional information:

PPE purchases during 20X5 were $735,000

Issuance of mortgage payable during 20X5 $226,000

The company follows ASPE.

All prepaid expenses at the beginning of the year expired during 20X5.

$5,000 was accrued for operating expenses at year end.

Bernie's Ltd.
Balance sheet
As at December 31,	20X5	20X4
Assets
Cash	57,000	101,000
Accounts receivable	224,000	192,000
Inventory	323,000	330,000
Interest receivable	8,000	3,000
Prepaids	18,000	17,000
Long term receivable from Dennis's Ltd.	26,000	-
Property, Plant and Equipment (PPE), net	1,087,000	525,000
Total	1,743,000	1,168,000
Liabilities
Accounts payable	220,000	137,000
Accrued liabilities	5,000	7,000
Wages payable	6,000	12,000
Mortgage payable	384,000	185,000
Shareholder's Equity
Common shares	861,000	619,000
Retained earnings	267,000	208,000
Total	1,743,000	1,168,000

What amount was paid to employees during 20X5 as it appears on the cash flow statement when using the direct method?

Multiple Choice

A) None of the other alternatives are correct

B) $140,000

C) $134,000

D) $128,000

E) $146,000