Last Year Lawsby Company Reported Sales of $120,000 on Its

Multiple Choice

Last year Lawsby Company reported sales of $120,000 on its income statement.During the year,accounts receivable increased 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) $105,000
B) $125,000
C) $110,000
D) $115,000