Last year, Alloy Company reported cost of goods sold of $130,000. Inventories decreased by $15,000 during the year, and accounts payable decreased by $10,000. The company uses the direct method to determine net cash flow from operating activities on the statement of cash flows. The cost of goods sold adjusted to a cash basis would be: a. $295,000 b. $340,000 c. $140,000. d. $125,000