Need help with homework please explain how you do this! A company uses...
80.2K
Verified Solution
Link Copied!
Question
Accounting
Need help with homework please explain how you do this!
A company uses the direct method to prepare the statement of cash flows. It presents the following data on its financial statements: End of this year End of prior year Accounts receivable $115,000 $100,000 Cost of goods sold 560,000 Sales revenue 830,000 Accounts payable* 79,000 62,000 Inventory 86,000 106,000 Salary payable 14,000 10,000 Salary expense 49,000 45,000 *Relates solely to the acquisition of inventory Which of the following is correct about accounts payable transaction in the operating activities category in the statement of cash flows? O A. The increase of $17,000 will be subtracted from purchases to determine payments to suppliers. OB. The increase of $17,000 will be subtracted from net income. OC. The increase of $17,000 will be added to purchases to determine payments to suppliers. OD. The increase of $17,000 will be added to net income
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Zin AI - Your personal assistant for all your inquiries!
