Optics Company Uses the Direct Method for Preparing Its Statement

Optics Company uses the direct method for preparing its statement of cash flow.Optics reports the following information regarding 2019: From the income statement:
Sales Revenues,$266,000
Cost of Goods Sold,$212,000
Operating Expenses,$37,000
Net Income $17,000
From the balance sheet:
$$\begin{array} { | l | r | r | } \hline & \text { Beginning Balance } & \text { Ending Balance } \\\hline \text { Accounts Receivable } & \$ 14,900 & \$ 18,400 \\\hline \text { Merchandise Inventory } & 23,900 & 17,800 \\\hline \text { Accounts Payable } & 6100 & 13,800 \\\hline \text { Accrued Liabilities } & 4500 & 1500 \\\hline\end{array}$$ Assume that there were no sales of long-term assets,no interest revenue,and no expenses other than the expenses shown above.Also,assume that Accounts Payable are for purchases of merchandise inventory only.Accrued liabilities relate to operating expenses.What amount will be shown for the net cash provided by operating activities?

A) $64,300
B) $24,300
C) $17,000
D) $9300

Correct Answer:

Verified

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

Access For Free