(Appendix 14A) Last Year, Knox Corporation Reported on Its Income

Multiple Choice

(Appendix 14A) Last year, Knox Corporation reported on its income statement sales of $375,000 and cost of goods sold of $140,000. During the year, the balance in accounts receivable increased $30,000, the balance in accounts payable decreased $25,000, and the balance in inventory increased $10,000. The company uses the direct method to determine the net cash provided by (used in) operating activities on its statement of cash flows.
-Under the direct method,cost of goods sold adjusted to a cash basis would be:

A) $105,000
B) $125,000
C) $175,000
D) $155,000