Neutral Paints Company Uses the Direct Method for Preparing Its

question 20

Multiple Choice

Neutral Paints Company uses the direct method for preparing its statement of cash flow. Neutral reports the following information regarding 2017: From the income statement:
Sales Revenues, $268,000
Cost of Goods Sold, $213,000
Operating Expenses, $34,000
From the balance sheet: What amount will be shown for payments to suppliers for operating expenses? (Accounts Payable are for purchases of merchandise inventory only, and Accrued Liabilities relate to operating expenses.)

• A) $37,000
• B) $34,000
• C) $32,500
• D) $38,500

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Definitions:

Company's Culture

The shared values, beliefs, behaviors, and practices that characterize an organization and influence its members' actions and interactions.

Founder

An individual who establishes an organization, company, or movement.

Organizational Cultures

The shared values, beliefs, norms, and practices that shape the social and psychological environment of a business or institution, influencing how employees interact and work.

Liabilities

Financial obligations or debts owed by a person or company, which are required to be paid back.