Last year Anderson Corporation reported a cost of goods sold of $109,000. The company's inventory at the beginning of the year was $12,800, and its inventory at the end of the year was $21,700. The prepaid expense account increased by $2,900 between the beginning and end of the year, and the accounts payable account decreased by $4,900. Cost of goods sold adjusted to the cash basis under the direct method would be: Multiple Choice $101,200 $116,800 $122,800 $120,800