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 Accounts receivable, Dec. 31 Accounts payable, Jan. 1 Accounts payable, Dec. 31 $13,000 9,000 4,000 7,000 Inventory, Jan. 1 10,000 Inventory, Dec. 31 15,000 Sales 56,000 Cost of goods sold 31,000 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. Cash payments for merchandise were a. $23,000 b. $39,000 c. $29,000 d. $33,000 Sales for the year were $600,000. Accounts receivable were $100,000 and $80,000 at the beginning and end of the year, respectively. Cash received from customers to be reported on the statement of cash flows using the direct method is a. $600,000 b. $700,000 c. $620,000 d. $580,000