Last Year, Knox Corporation Reported on Its Income Statement Sales

Multiple Choice

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 operating activities on its statement of cash flows. Under the direct method, sales adjusted to a cash basis would be:

A) $295,000
B) $345,000
C) $405,000
D) $355,000