using the direct method operating expense adjusted to a cash basis was 641402

The change in each of Klondike Company”s balance sheet accounts appears below:

Klondike Company’s income statement for the year appears below:

There were no sales or retirements of plant and equipment and no dividends paid during the year. The company pays no income taxes.

The company uses the direct method for determining the net cash provided by operating activities on its statement of cash flows.

1. Using the direct method, sales adjusted to a cash basis was:

A) $345,000

B) $350,000

C) $355,000

D) $359,000

2. Using the direct method, cost of goods sold adjusted to a cash basis was:

A) $190,000

B) $192,000

C) $188,000

D) $184,000

3. Using the direct method, operating expense adjusted to a cash basis was:

A) $168,000

B) $155,000

C) $146,000

D) $148,000

4. The net cash provided (used) by investing activities was:

A) $(6,000)

B) $11,000

C) $(11,000)

D) $6,000

5. The net cash provided (used) by financing activities was:

A) $(9,000)

B) $(12,000)

C) $20,000

D) $(3,000)