The financial statements of New World, Incorporated, provide the following information for the current year:

	December 31	January 1
Accounts receivable	$ 293,000	$ 441,500
Inventory	$ 287,500	$ 272,000
Prepaid expenses	$ 75,200	$ 73,000
Accounts payable (for merchandise)	$ 267,300	$ 261,550
Accrued expenses payable	$ 66,150	$ 82,450
Net sales	$ 3,197,500
Cost of goods sold	$ 1,687,500
Operating expenses (including depreciation of $69,000)	$ 387,500

What is the amount of New World's cash payments for operating expenses during the current year?

Multiple Choice

• $320,700

• $406,000

• $337,000

• $334,800