(Appendix 13A) A merchandising company showed $250,000 in cost of goods sold on its income statement. The company's beginning inventory was $75,000, and its ending inventory was $60,000.

The accounts payable balance was $50,000 at the beginning of the year and $40,000 at the end of the year. Using the direct method, adjust the company's cost of goods sold to a cash basis.

AppendixLO1