The Kapyong Company's balance sheet included an inventory balance of $105 000 at 30/06/16 and $142 000 at 30/06/17. Accounts payable balances were $78 000 and $47 000 at 30/06/16 and at 30/06/17, respectively. Kapyong's accounts payable only relate to inventory purchases. Cost of goods sold as reported on the 2017 income statement was $885 000.

Using the direct method, determine the amount that Kapyong will report as cash paid for inventory in the operating activities section of the statement of cash flows.