Waterway Industries reported operating expenses of $373000 for 2018. The following data were extracted from the company's financial records:

12/31/1712/31/18Prepaid Expenses$ 60600$69200Accrued Expenses210300255000

On a statement of cash flows for 2018, using the direct method, cash payments for operating expenses should be

$336900.

$426300.

$319700.

$409100.