Presented below is the income statement of Nicklaus, Inc.:

Sales $475,000

Cost of goods sold 280,000

Gross profit 195,000

Operating expenses 89,000

Income before income taxes 106,000

Income taxes 42,000

Net Income $64,000

In addition, the following information related to net changes in working capital accounts is presented:

	Increase	Decrease
Cash	$15,000
Prepaid Expenses (operating)	8,400
Inventories		$16,200
Salaries payable (operating)		6,000
Trade accounts payable	11,000

The company also indicates that depreciation expense for the year was $14,200.

Cash paid for operating expenses is:

Select one:

a.

$86,600

b.

$103,400

c.

$74,600

d.

$88,400

e.

$91,400