The following Income Statement and account balance changes apply to questions 7-10: Income Statement for the year: Sales $ 900,000 Cost of Goods Sold 430,000 Gross Profit $ 470,000 Operating Expenses 250,000 Net Income before Taxes $ 220,000 Taxes 35,000 Net Income $ 185,000 Account Balance Changes during the year: Inventory increase $78,000 Accounts Payable for inventory increase $24,000 Accounts Receivable increase $63,000 Depreciation increase $74,000 Prepaid expenses decrease $3,000 Accrued liabilities (e.g., Wages Payable) decrease $14,000 Taxes Payable decrease $10,000 8. What was the amount of cash payments made during the year for inventory purchases, using the direct method? a. $376,000b. $484,000c. $376,000d. $532,000