Last Year Anderson Corporation Reported a Cost of Goods Sold

Multiple Choice

Last year Anderson Corporation reported a cost of goods sold of $100,000. The company's inventory at the beginning of the year was $11,000, and its inventory at the end of the year was $19,000. The prepaid expense account increased by $2,000 between the beginning and end of the year, and the accounts payable account decreased by $4,000. Cost of goods sold adjusted to the cash basis under the direct method would be:

A) $94,000
B) $106,000
C) $112,000
D) $110,000