The following selected account balances appear on the financial statements of Washington Company:

Accounts Receivable, January 1	$16,845
Accounts Receivable, December 31	8,347
Accounts Payable, January 1	5,325
Accounts Payable, December 31	7,026
Merchandise Inventory, January 1	10,730
Merchandise Inventory, December 31	13,830
Sales	62,182
Cost of Merchandise Sold	36,827

Washington Company uses the direct method to determine net cash flows from operating activities. Cash paid for merchandise during the year is

a. $41,628

b. $32,026

c. $38,226

d. $63,581