Skipper's Souvenir Shop had comparative balance sheets and income statements that showed the following information for 2010 and 2011: Inventory - 12/31/10 $100,000 Inventory - 12/31/11 85,000 Accounts payable - 12/31/10 20,000 Accounts payable - 12/31/11 15,000 Cost of goods sold - 2011 700,000 Skipper'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 Skipper should report on its 2011 statement of cash flows assuming that the direct method is used?
A) $690,000
B) $710,000
C) $850,000
D) $550,000
A
You might also like to view...
In discussing book value of common stock, which statement below is not correct?
A. Book value is also referred to as total equity of the firm. B. Book value per share is computed by dividing common equity by the number of common shares outstanding. C. The terms "issued" and "outstanding" are synonymous when discussing the number of common shares. D. If any preferred stock were outstanding, its carrying amount would be deducted from the total equity to obtain the common equity.
The completeness assertion refers to ensuring that transactions and events that should have been recorded actually have been recorded.
Answer the following statement true (T) or false (F)
Which of the following tests is the most widely used method for posttesting print ads?
A) consumer jury B) recognition test C) theatre test D) recall test
When completing the work sheet, the factory overhead account balances are extended to the income statement
Indicate whether the statement is true or false