Skipper's Souvenir Shop had comparative balance sheets and income statements that showed the following information for 2010 and 2011: Inventory - 12/31/10 $100,000 Inventory - 12/31/11 85,000 Accounts payable - 12/31/10 20,000 Accounts payable - 12/31/11 15,000 Cost of goods sold - 2011 700,000 Skipper's accounts payable balances are composed solely of amounts due to suppliers for purchases of inventory. What is the amount of cash payments for inventory that Skipper should report on its 2011 statement of cash flows assuming that the direct method is used? Select one: a. $690,000 b. $710,000 c. $850,000 d. $550,000