Last Year Lawn Corporation Reported Sales of $115,000 on Its

Multiple Choice

Last year Lawn Corporation reported sales of $115,000 on its income statement. During the year, accounts receivable decreased by $10,000 and accounts payable increased by $15,000. The company uses the direct method to determine the net cash provided by operating activities on the statement of cash flows. The sales revenue adjusted to a cash basis for the year would be:

A) $125,000
B) $90,000
C) $140,000
D) $100,000