Hepworth Company's income statement for last year is as follows:

Income Statement
Sales	$600,000
Less: Cost of goods sold	400,000
Gross margin	200,000
Less: Operating expenses	120,000
Income before income taxes	80,000
Less: Income taxes	32,000
Net income	$ 48,000

The beginning and ending balances for last year are available for the following accounts:

	Ending	Beginning
	balance	balance
Accounts receivable	$64,000	$80,000
Inventory	120,000	100,000
Prepaid expenses	24,000	16,000
Accumulated depreciation	(80,000)	(60,000)
Accounts payable	60,000	90,000
Accrued liabilities	32,000	20,000
Income taxes payable	4,000	10,000

Using the direct method, sales revenue, adjusted to a cash basis, is:

a.$616,000.

b.$16,000.

c.$600,000.

d.$584,000.