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Home Q & A Board Other Fields Homework Help Business Accounting
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bernie2981 bernie2981
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8 years ago
A company uses the direct method to prepare the statement of cash flows. It presents the following data on its financial statements:

   End of this year   End of prior year
Accounts receivable   $115,000   $100,000
Cost of goods sold   520,000   
Sales revenue   850,000   
Accounts payable*   80,000   65,000
Inventory   92,000   110,000
Salary payable   15,500   12,000
Salary expense   50,000   44,000

*Relates solely to the acquisition of inventory

What will appear in the operating activities section related to accounts payable?
A) The increase of $15,000 will be subtracted from net income.
B) The increase of $15,000 will be added to purchases to determine payments to suppliers.
C) The increase of $15,000 will be subtracted from purchases to determine payments to suppliers.
D) The increase of $15,000 will be added to net income.
Textbook 
Managerial Accounting

Managerial Accounting


Edition: 4th
Author:
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nucleinuclei
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#2
3 years ago
nice
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#3
3 years ago
thank you
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