The Financial Statements of New World Company Provide the Following

The financial statements of New World Company provide the following information for the current year:
$\begin{array}{|l|c|c|}\hline & \text { Dec.31 } & \text { Jan.1 } \\\hline \text { Accounts receivable } & \$ 273,000 & \$ 241,500 \\\hline \text { Inventory } & \$ 262,500 & \$ 252,000 \\\hline \text { Prepaid expenses } & \$ 67,200 & \$ 63,000 \\\hline \text { Accounts payable (for merchandise) } & \$ 237,300 & \$ 221,550 \\\hline \text { Accrued expenses payable } & \$ 66,150 & \$ 72,450 \\\hline \text { Net sales } & \$ 3,097,500 \\\hline \text { Cost of goods sold } & \$ 1,627,500 \\\hline \text { Operating expenses (including depreciation of } \$ 94,500) & \$ 367,500 \\\hline\end{array}$

-Bert's Bungy Jumping Company paid $650,000 cash for casualty insurance during the year 2014. If the income statement for the year, reports insurance expense of $620,000:

A) Bert's prepaid insurance decreased $30,000.
B) Bert's cash account balance decreased $30,000.
C) Bert's prepaid insurance increased $30,000.
D) Bert's prepaid insurance was $30,000 at year-end.