Merrimack Farms, Ltd., made sales of $760,000 and had cost of goods sold of $390,000. Inventory decreased by $18,000 and accounts payable decreased by $7,000. Accounts payable relates solely to the purchase of inventory. Operating expenses were $175,000. How much cash did Merrimack Farms pay for inventory during the year?

A. $177,000

B. $379,000

C. $397,000

D. $390,000

could you please show me your work ?