Kuma, Inc. had cost of goods sold of $106,000 for the just completed year. Shown below are the beginning and ending balances of various Kuma accounts: EndingBeginningCash and cash equivalents$59,000 $45,000 Accounts receivable$75,000 $81,000 Inventory$36,000 $42,000 Accounts payable$18,000 $14,000 Retained earnings$79,000 $64,000 Kuma prepares its statement of cash flows using the direct method. On its statement of cash flows, what amount should Kuma show for its cost of goods sold adjusted to a cash basis (i.e., cash paid to suppliers)?
A. $116,000
B. $102,000
C. $96,000
D. $100,000
Answer: C
Business
You might also like to view...
Dividends declared and paid reduce a company's retained earnings balance
a. True b. False Indicate whether the statement is true or false
Business
What is the usefulness of a shadow price (or dual value)?
What will be an ideal response?
Business
Net investment income is always less than gross investment income.
Answer the following statement true (T) or false (F)
Business
What is the meaning of the term "balanced scorecard"? What are the merits of using a balanced scorecard in judging a company's performance?
What will be an ideal response?
Business