Required information [The following information applies to the questions displayed below.] In its 2018 Annual Report to Shareholders, Kinney Inc. reported the following Consolidated Statement of Cash Flows: For the years ended December 31, 2018 2017 Cash flow from operating activities: Cash received from customers $ 196,862,040 $ 210,873,952 Cash paid to suppliers and employees (190,376,791 ) (199,574,336 ) Interest paid, net (1,113,990 ) (1,648,523 ) Income taxes paid (496,650 ) (632,250 ) Cash provided by operations 4,874,609 9,018,843 Cash flow from investing activities: Capital expenditures and acquisitions (2,553,579 ) (1,217,382 ) Expenditures for other assets (52,560 ) (146,420 ) Cash used in investing activities (2,606,139 ) (1,363,802 ) Cash flow from financing activities: Principal payments of long-term debt and lease agreements (2,512,485 ) (7,170,175 ) Addition to long-term debt and lease liability 3,068,378 1,524,847 Purchase of common stock and other capital transactions (1,695,906 ) (953,231 ) Payment of dividends (945,558 ) (1,066,968 ) Cash provided by (used in) financing activities (2,085,571 ) (7,665,527 ) Net increase (decrease) in cash 182,899 (10,486 ) Cash at beginning of year 202,615 213,101 Cash at end of year $ 385,514 $ 202,615 2018 2017 Reconciliation of net income to net cash provided by operations: Net income $ 1,820,733 $ 2,620,437 Depreciation and amortization 3,595,504 3,615,087 Deferred income taxes 214,000 353,766 Changes in assets and liabilities, net of acquisitions: Decrease (increase) in receivables (2,987,353 ) 4,210,668 Decrease (increase) in inventories (364,508 ) 6,050,490 Increase (decrease) in prepaid expenses 370,648 (98,850 ) Increase (decrease) in controlled disbursements 382,394 92,718 Increase (decrease) in accounts payable 1,858,676 (8,254,148 ) Increase (decrease) in accrued expenses (15,485 ) 426,616 Other, net 2,059 Cash provided by operations $ 4,874,609 $ 9,018,843

Required:

Assuming the decrease in accrued expenses during fiscal year 2018 included a $15,500 reduction due to taxes, compute the income tax expense for Kinney in that year.

Kinney reported cost of goods sold of $169,014,150 in its fiscal 2018 income statement. Compute Kinneys net inventory purchases during the year.

Assuming the decrease in accrued expenses during fiscal year 2018 included a $14,900 reduction due to interest on debt, compute the interest expense (net) for Kinney in that year.

Kinney reported cost of goods sold of $169,014,150 in its fiscal 2018 income statement. Assuming that Kinney uses accounts payable strictly for inventory purchases and that all such purchases are on credit, how much cash did Kinney pay during the year for inventories: