Last Year Cumley Company Reported a Cost of Goods Sold

Multiple Choice

Last year Cumley Company reported a cost of goods sold of $90,000. Inventories increased by $21,000 during the year, and accounts payable decreased by $14,000. The company uses the direct method to determine the net cash provided by operating activities on the statement of cash flows. The cost of goods sold adjusted to a cash basis would be:

A) $55,000
B) $111,000
C) $125,000
D) $104,000