Lynette Company's Inventory balance at 12/31/04 was $200,000 and was $188,000 at 12/31/05. Its Accounts Payable balance at 12/31/04 was $80,000 and was $84,000 at 12/31/05, and its cost of goods sold for 2005 was $720,000. The company's total amount of cash payments for merchandise in 2005 equals:

A) $704,000.
B) $712,000.
C) $720,000.
D) $728,000.
E) $736,000.

Ans: A) $704,000.