Income Statement for the year:

Sales $ 750,000

Cost of Goods Sold 530,000

Gross Profit $ 220,000

Operating Expenses 130,000

Net Income before Taxes $ 90,000

Taxes 15,000

Net Income $ 75,000

Account Balance Changes during the year:

Inventory increase $17,000

Accounts Receivable increase $52,000

Depreciation increase $43,000

Prepaid expenses decrease $ 1,000

Accounts Payable for inventory increase $12,000

Accrued liabilities (e.g., Wages Payable) decrease $ 9,000

Taxes Payable decrease $ 4,000

What was the amount of cash payments for operating expenses this year, using the direct method?

a. $77,000 b. $97,000 c. $79,000 d. $95,000