The following items relate to the preparation of a statement of cash flows: | Year 2 | Year 1 | | | | Year 2 | Cash | $150,000 | $100,000 | | | | | Inventory | 330,000 | 210,000 | | | Net sales | $ 3,200,000 | Prepaid exp. | 50,000 | 25,000 | | | CGS | (2,500,000) | Noncurrent assets | 565,000 | 300,000 | | | Expenses | (500,000) | Accum. deprec. | (55,000) | (25,000) | | | Net income | $ 200,000 | Accrued exp. | 70,000 | 65,000 | | | | |
The direct approach is used for operating activities. Under operating activities, cash paid for operating expenses for year 2 amounted to
A. $380,000 | B. $435,000 | C. $490,000 | D. $410,000 |
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