During the Year Just Completed, Anderson Company Reported a Cost

Multiple Choice

During the year just completed, Anderson Company reported a cost of goods sold of $100,000. The company's inventory at the beginning of the year was $11,000, and its inventory at the end of the year was $19,000. The Prepaid Expense account increased by $2,000 between the beginning and end of the year, and the Accounts Payable account decreased by $4,000. Cost of goods sold adjusted to the cash basis under the direct method would be:

A) $94,000
B) $106,000
C) $112,000
D) $110,000