Cridberg Corporation's Selling and Administrative Expenses for Last Year Totaled

Multiple Choice

Cridberg Corporation's selling and administrative expenses for last year totaled $260,000. During the year the company's prepaid expense account balance increased by $18,000 and accrued liabilities decreased by $12,000. Depreciation for the year was $25,000. Based on this information, selling and administrative expenses adjusted to a cash basis under the direct method on the statement of cash flows would be:

A) $255,000
B) $315,000
C) $205,000
D) $265,000