Racing Horse Corporation reported net income for 2010 of $200,000, sal

Racing Horse Corporation reported net income for 2010 of $200,000, sales of $540,000, expenses
(excluding depreciation) of $180,000, and depreciation expense of $60,000.

The company’s accounts
receivable balance increased by $40,000 during the year and its accounts payable balance remained
the same. The company’s change in cash for the year is estimated to be
A) $160,000. B) $220,000. C) $380,000. D) $100,000.

ANSWER

B