Financial statements - Income statement for 20X4 and Comparative Balance Sheet for diving equipment manufacturer Lincoln Corp for December 31, 20X4 and 20X3 Lincoln Corp. - Income Statement as of December 31st, 20X4 Revenue $5,000 Cost of Goods Sold $3,200 Gross Profit $1,800 Operating expenses $1,350 Operating Profit $ 450 Loss on sale of equipment $20 Income tax expense $180 Profit for 2012 $250 Lincoln Corp. - Balance Sheet - December 31

	20X4	20X3
Assets:
Cash	$2,350	$1,800
Accounts Receivable	450	1,000
Inventory	800	700
Prepaid expenses	40	80
Equipment	2,500	1,500
Accumulated Depreciation	(1,350)	(1,000)
Total Assets	$4,790	$4,080
Liabilities & Shareholders' Equity
Accounts Payable	$680	$350
Operating expenses payable	210	100
Income Taxes Payable	120	0
Dividends Payable	50	100
Long term notes Payable	300	70
Common Shares	2,500	2,500
Retained Earnings	930	960
Total Liabilities & Shareholders' Equity	$4,790	$4,790

Additional Information for Lincoln Corp: Operating expenses for 20X4 included depreciation for $500 Accounts payable relate exclusively to the purchase of inventory Machine with a historical cost of $200 was sold at a loss of $20 A new machine was purchased during the year for $1,200 Dividends were declared Long term notes payable were issued

The total Cash payments for Operating Expenses when using the direct method are:

$910

None of the other alternatives are correct

$800

$690

$110