McDaniel, Inc uses the direct method to prepare its statement of cash flows

Refer to the following financial statement information for the year ended December 31, 2017:

McDaniel, Inc
Comparative Balance Sheet
December 31, 2017 and 2016
2017 2016 Increase
(Decrease)
Cash $35,100 $15,100 $20,000
Accounts Receivable 26,800 33,800 (7,000 )
Merchandise Inventory 56,100 29,100 27,000
PP&E, net 126,000 92,000 34,000
Total Assets $244,000 $170,000 $74,000

Accounts Payable 9,700 13,700 $(4,000 )
Accrued Liabilities 6,900 2,900 4,000
Long-term Notes Payable 69,400 78,400 $(9,000 )
Total Liabilities $86,000 $95,000 $(9,000 )

Common Stock $55,000 $3,000 $52,000
Retained Earnings 115,000 78,000 37,000
Treasury Stock (12,000 ) (6,000 ) (6,000 )
Total Stockholders' Equity $158,000 $75,000 $83,000

Total Liabilities and Stockholders' Equity $244,000 $170,000 $74,000

McDaniel, Inc
Income Statement
December 31, 2017 and 2016
2017 2016
Sales Revenue $289,700
Interest Revenue 2,600
Gain on Sale of Plant Assets 6,000
Total Revenues and Gains $298,300
Cost of Goods Sold 146,800
Salaries and Wages Expense 47,500
Depreciation Expense-Plant Assets 16,000
Other Operating Expense 24,700
Interest Expense 3,500
Income Tax Expense 7,800
Total Expenses 246,300
Net Income $52,000

Use the direct method to compute the payments made to employees. (Accrued Liabilities relate to other operating expense.)
A) $72,200
B) $43,500
C) $24,700
D) $47,500

D .D) Cash paid to employees = $47,500