Last Year, Nye Company Reported on Its Income Statement Sales

Multiple Choice

Last year, Nye Company reported on its income statement sales of $475,000 and cost of goods sold of $240,000. During the year, the balance in accounts receivable increased $40,000, 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,cost of goods sold adjusted to a cash basis would be:

A) $225,000
B) $205,000
C) $275,000
D) $255,000