Question 17 Gulf Co's cost of merchandise sold during the year was $75,000. Merchandise inventories were $14,500 and $12,500 at the beginning and end of the year, respectively. Accounts payable (allowed to merchandise suppliers) were $7,000 and $6,000 at the beginning and end of the year, respectively. Using the direct method of reporting cash flows from operating activities, cash payments for merchandise total $72.000 578,000 574.000 one of the above $76,000