Cost of goods sold for the year was $660,000. Inventory was $83,000 at the beginning of the year and $37,000 at the end of the year. There were no changes in the amount in account payable for the year. Cash payment for merchandise to be reported under the direct method is:
A) $706,000.
B) $614,000.
C) $780,000.
D) $540,000.
B) $614,000.
Explanation: COGS + (ending - beginning inventory; ex: $660,000 + ($37,000 - $83,000) = $614,000
You might also like to view...
If assets are $365,000 and equity is $120,000, then liabilities are:
A. $610,000. B. $245,000. C. $120,000. D. $365,000. E. $485,000.
Firms recognize expenditures to acquire intangibles externally from third parties as _____ if the intangibles are either separable or arise from contractual or other legal rights
a. assets b. liabilities c. retained earnings d. revenue e. expenses
Peter Piper Inc had the following information available from its 2011 balance sheet and income statement: Insurance expense $55,000 Prepaid insurance - beginning 8,000 Prepaid insurance - ending 5,000 What amount would be reported as cash outflows for insurance on the statement of cash flows for 2011 using the direct method?
A) $68,000 B) $58,000 C) $42,000 D) $52,000
Wild & Scenic River Tours, Inc, is a corporation. Wild & Scenic has the implied power to
a. issue stocks and bonds. b. execute contracts and negotiable instruments. c. buy and sell (or lease) property. d. perform all acts reasonably appropriate and necessary to accomplish its corporate purposes.