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$(6000)?Accounts receivable$(3000)?Inventory$0 ??Prepaid expenses$10,000? Long-term investments$40,000? Property, plant, and equipment$15,000? Accumulated depreciation$55,000? Liability and Equity Accounts: Accounts payable$3000? Accrued liabilities$(13,000)?Income taxes payable$14,000? Bonds payable$(40,000)?Common stock$11,000? Retained earnings$10,350? The company's income statement for the year appears below:Income StatementSales$750,000?Cost of goods sold 450,000?Gross margin 300,000?Selling and administrative expense 261,000?Net operating
income 39,000???Income taxes 13,650?Net income$25,350??The company declared and paid $15,000 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 sales adjusted to a cash basis would be:
A. $528,000
B. $756,000
C. $790,350
D. $753,000
Answer: D
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