Last year, Knox Corporation reported on its income statement sales of $375,000 and cost of goods sold of $140,000. During the year, the balance in accounts receivable increased $30,000, the balance in accounts payable decreased $25,000, and the balance in inventory increased $10,000. The company uses the direct method to determine the net cash provided by (used in) operating activities on its statement of cash flows.Under the direct method, sales adjusted to a cash basis would be:
A. $295,000
B. $355,000
C. $345,000
D. $405,000
Answer: C
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