Last year Maine Company reported cost of goods sold of $110,000. Inventories increased by $30,000 during the year, and accounts payable decreased by $15,000. The company uses the direct method to determine the net cash flows from operating activities on the statement of cash flows. The cost of goods sold adjusted to a cash basis would be:

a.$140,000.

b.$155,000.

c.$65,000.

d.$125,000.