The changes in Northrup Corporation's balance sheet account balances for last year appear below: Increases (Decreases)Asset and Contra-Asset Accounts: Cash and cash equivalents$4,000 Accounts receivable$(4,000)Inventory$(2,000)Prepaid expenses$2,000 Long-term investments$40,000 Property, plant and equipment$25,000 Accumulated depreciation$68,000 Liability and Equity Accounts: Accounts payable$(6,000)Accrued liabilities$8,000 Income taxes payable$(8,000)Bonds payable$(70,000)Common stock$10,000 Retained earnings$63,000 The company's income statement for the year appears below:Income StatementSales$ 980,000Cost of goods sold 540,000Gross margin440,000Selling and administrative expense 310,000Net operating income130,000Income taxes 39,000Net income$ 91,000The
company declared and paid $28,000 in cash dividends during the year. It did not dispose of any property, plant, and equipment during the year. The company uses the direct method to determine the net cash provided by (used in) operating activities.On the statement of cash flows, the selling and administrative expense adjusted to a cash basis would be:
A. $310,000
B. $384,000
C. $236,000
D. $304,000
Answer: C
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Answer the following statement true (T) or false (F)
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What will be an ideal response?