Last Year Madson Company Reported a Cost of Goods Sold

Multiple Choice

Last year Madson Company reported a cost of goods sold of $800,000 on its income statement. The following additional data were taken from the company's comparative balance sheet for the year:
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) $830,000
B) $810,000
C) $770,000
D) $790,000