The following selected account balances appeared on the financial statements of the Washington Company. Use these balances to answer the questions that follow. Accounts Receivable, Jan. 1 $14,181 Accounts Receivable, Dec. 31 8,524 Accounts Payable, Jan. 1 4,839 Accounts Payable, Dec. 31 7,930 Inventory, Jan. 1 7,617 Inventory, Dec. 31 16,470 Sales 66,898 Cost of Goods Sold 35,594 The Washington Company uses the direct method to calculate net cash flow from operating activities. Assume that all accounts payable are owed to merchandise suppliers.

a.$69,464 b.$72,555 c.$66,898 d.$61,241