Use the following information to answer parts A and B.

Sales                                           $755,000

COGS                                            543,000

Gross profit                                 212,000

Depreciation                                 20,000

Other operating Expenses       121,000

Operating income                      71,000

Loss on disposal of Assets           5,000

Pretax Income                             66,000

Income taxes                            $40,000

Additional Information:

Accounts receivable increased by 10,000 during the year

inventory decreased by 30,000 during the year

Property Plant and Equipment increased by 15,000

Accounts payable increased by 24,000

Other accrued liabilities decreased by 13,000

Debt (long and short) increased by 25,000

Equity increased by 5,000

A. Prepare a reconciliation of Net income cash flow from operating activities

B. Based solely on above how much cash was paid for merchandise inventory during the year?