The following selected account balances appear on the financial statements of Washington Company: Accounts Receivable, January 1 $14,800 Accounts Receivable, December 31 6,682 Accounts Payable, January 1 4,401 Accounts Payable, December 31 7,153 Merchandise Inventory, January 1 10,462 Merchandise Inventory, December 31 16,778 Sales 72,475 Cost of Merchandise Sold 36,045 Washington Company uses the direct method to determine net cash flows from operating activities. Cash paid for merchandise during the year is a. $26,977 b. $76,039 c. $39,609 d. $45,113