Davis Metals Company uses the direct method to prepare its statement of cash flows
Use the following information reported for the year 2017 to compute the cash paid to suppliers for operating expenses.
Operating expenses, $29,000
Accrued Liabilities, beginning balance, $3,400
Accrued Liabilities, ending balance, $5,400
A) $32,400
B) $31,000
C) $27,000
D) $34,400
C .C)
Accrued Liabilities, beginning balance $3,400
Add: Operating expenses 29,000
Less: Accrued Liabilities, ending balance (5,400 )
Cash paid for operating expenses $27,000
You might also like to view...
U.S. GAAP and IFRS require firms to account for business combinations using the _____ method
a. purchase b. pooling-of-interests c. uniting-of-interests d. equity e. cost
Netflix has one of the highest customer loyalty ratings in the entertainment industry with approximately 74% of current subscribers continuing to renew their subscription with Netflix on a month-to-month basis. In addition, many customers have cancelled their cable or satellite subscriptions and rely almost exclusively on streaming services such as Netflix for their entertainment. Netflix offers three different payment options or plans for customers-the basic plan at $7.99 per month, standard plan at $10.99 per month, or a premium plan at $13.99 per month. Thus, subscribers who renew on a monthly basis would pay between $95.88 and $167.88 per year to continue their Netflix service. If 74% of subscribers continue their service on an annual basis, Netflix is able to build a stable revenue
stream based on repeat purchasers. A quick snapshot of one customer revealed that the customer had subscribed to the Premium plan for five years and generated over $700 in revenue to Netflix. Which of the following marketing terms best captures the importance of customer loyalty and its impact on Netflix? A. Customer impact score B. Customer retail calculation C. Customer lifetime value D. Customer profitability value
General Motors and Chipotle have production processes that tend to be standardized, and all customers receive similar if not identical products. These organizations are examples of ________ technologies.
A. large process B. small batch C. small process D. continuous process E. large batch
Richard exchanges a building with a basis of $35,000, and subject to a liability of $25,000, for land with a FMV of $50,000 owned by Bill. Bill takes the building subject to the liability. What is the amount of Richard's realized gain?
A) $0 B) $15,000 C) $25,000 D) $40,000