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Cadion Co. owned control over Knieval Inc. Cadion reported sales of $420,000 during 2009 while Knieval reported $280,000.

Cadion Co. owned control over Knieval Inc. Cadion reported sales of $420,000 during 2009 while Knieval reported $280,000. Inventory costing $28,000 was transferred from Knieval to Cadion (upstream) during the year for $56,000. Of this amount, twenty-five percent was still in ending inventory at year's end. Total receivables on the consolidated balance sheet were $112,000 at the first of the year and $154,000 at year-end. No intercompany debt existed at the beginning or ending of the year. Using the direct approach, what is the consolidated amount of cash collected by the business combination from its customers?
A.$602,000
B.$644,000
C.$686,000
D.$714,000
E.$592,000

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