Please answer the questions attached in the picture. Provide the calculation or explanation of the answer. please and thank you!

A company purchases $25,000 of inventory in January 206, pays for it in March 206 and sells them in May 206. The accounting period ends on December 31st. Which of the following statements is correct? Multiple Choice The company will report accounts payable of $25,000 in 206 Balance Sheet None of the other alternatives are correct The statement of cash flows for 206 will report an operating cash outflow of $25,000 The 205 income statement will report the $25,000 as cost of goods sold The 206 Statement of Retained Earnings will not be affected by this transaction AB Ltd.'s Inventory increased by $1,550 during the year. Also during the year the cost of goods sold was $4,994. Required: AB's net purchases for the period must have been: $