Cost of Merchandise Sold for the Year Was $850,000

question 90

Multiple Choice

Cost of merchandise sold for the year was $850,000.Inventories were $60,000 and $120,000 at the beginning and end of the year,respectively.There were no changes in accounts payable from the beginning to the end of the year.Cash payment for merchandise to be reported on the cash flow statement using the direct method is:

• A)$850,000.
• B)$910,000.
• C)$940,000.
• D)$880,000.

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Definitions:

Physical Similarities

The extent to which objects or individuals share common physical characteristics or attributes.

Product Mix

The total range of products or services that a company offers to its customers.

Electronic Retailer

A business that sells goods or services over the internet, allowing customers to shop online from a website or mobile app.