Clyde's Clothing Inc comparative balance sheets and income statements showed the following information for 2010 and 2011: Inventory - 12/31/2010 $ 60,000 Inventory - 12/31/2011 75,000 Accounts payable - 12/31/2010 18,000 Accounts payable - 12/31/2011 20,000 Cost of goods sold - 2011 400,000 Clyde's accounts payable balances are composed solely of amounts due to suppliers for purchases of

inventory. What is the amount of cash payments for inventory that Clyde should report on its 2011 statement of cash flows assuming that the direct method is used?
A) $387,000
B) $413,000
C) $497,000
D) $303,000


B

Business

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