Financial statements for Sheridan Company are given below:

Sheridan Company
Balance Sheet
January 1, 2021
Assets				Equities
Cash		$ 970000		Accounts payable		$ 453000
Accounts receivable		863000
Buildings and equipment		3540000
Accumulated depreciation buildings and equipment		(1220000	)	Common stock		2750000
Patents		434000		Retained earnings		1384000
		$4587000				$4587000

Sheridan Company
Statement of Cash Flows
For the Year Ended December 31, 2021
Increase (Decrease) in Cash
.
Cash flows from operating activities
	Net income						$1160000
	Adjustments to reconcile net income to net cash provided by operating activities:
		Increase in accounts receivable		$(390000	)
		Increase in accounts payable		196000
		Depreciationbuildings and equipment		363000
		Gain on sale of equipment		(143000	)
		Amortization of patents		54000			80000
Net cash provided by operating activities							1240000
.
Cash flows from investing activities
	Sale of equipment			288000
	Purchase of land			(601000	)
	Purchase of buildings and equipment			(1149000	)
Net cash used by investing activities							(1462000)
.
Cash flows from financing activities
	Payment of cash dividend			(355000	)
	Sale of common stock			967000
Net cash provided by financing activities							612000
Net increase in cash							390000
Cash, January 1, 2021							970000
Cash, December 31, 2021							$1360000

Total assets on the balance sheet at December 31, 2021 are $6647000. Accumulated depreciation on the equipment sold was $331000. The accounts payable at December 31, 2021 were

a. 887000

b. 649000

c. 196000

d. 257000