Solved

Parmesan Company Uses the Direct Method for Its Statement of Cash

Question 56

Multiple Choice

Parmesan Company uses the direct method for its statement of cash flow. It reports the following information regarding the year 2014: From the income statement:
Sales Revenues, $265,000
Cost of Goods Sold, $210,000
Operating expenses, $31,000
From the balance sheet: Parmesan Company uses the direct method for its statement of cash flow. It reports the following information regarding the year 2014: From the income statement: Sales Revenues, $265,000 Cost of Goods Sold, $210,000 Operating expenses, $31,000 From the balance sheet: On the statement of cash flows, what amount will be shown for payments to suppliers for operating expenses? (Assume that Accounts Payable are for purchases of inventory only and Accrued Liabilities relate to Operating Expenses.) A) $33,500 B) $28,500 C) $29,500 D) $35,000 On the statement of cash flows, what amount will be shown for payments to suppliers for operating expenses? (Assume that Accounts Payable are for purchases of inventory only and Accrued Liabilities relate to Operating Expenses.)


A) $33,500
B) $28,500
C) $29,500
D) $35,000

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Q51: Which of the following items would be

Q52: Which of the following statements is true

Q53: Nelson Corp. uses the indirect method to

Q55: The financing activities section of the statement

Q57: The investing activities section of the statement

Q58: Nelson Corp. uses the indirect method to

Q59: Davis Company uses the direct method to

Q60: The purchase of equipment financed by a

Q61: Which of the following sections from the

Q182: The operating activities section of the statement