on its statement of cash flows what amount should narley dude show for its cost of g 641401

Narley Dude Corporation had net sales of $720,000 and cost of goods sold of $385,000 for the just completed year. Shown below are the beginning and ending balances for the year of various Narley Dude accounts:

 

	Ending	Beginning
Cash..	$34,000	$20,000
Accounts receivable	$49,000	$19,000
Inventory	$67,000	$44,000
Accounts payable	$15,000	$21,000

Narley Dude prepares its statement of cash flows using the direct method.

1 On its statement of cash flows, what amount should Narley Dude show for its net sales adjusted to a cash basis (i.e., cash received from sales)?

A) $690,000

B) $704,000

C) $750,000

D) $755,000

2 On its statement of cash flows, what amount should Narley Dude show for its cost of goods sold adjusted to a cash basis (i.e., cash paid to suppliers)?

A) $356,000

B) $368,000

C) $402,000

D) $414,000