Springfield Company's Comparative Balance Sheets Included Inventory of $89,700 at December

question 54

Essay

Springfield Company's comparative balance sheets included inventory of $89,700 at December 31, 2015, and
$73,300 at December 31, 2016 Springfield's comparative balance sheets also included accounts payable of $54,400 at December 31, 2015, and $38,100 at December 31, 2016. Springfield's accounts payable balances are composed solely of amounts due to suppliers for purchases of inventory on account. Cost of goods sold, as reported by Springfield on its 2016 income statement, amounted to $750,800. What is the amount of cash payments for inventory that Springfield will report in the Operating Activities section of its 2016 statement of cash flows assuming that the direct method is used?

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Definitions:

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Graphical representations using circles to show the relationships and differences between various sets.

Intersection

The point or set of points where two or more geometric figures meet or cross.

Events

In probability, events are outcomes or occurrences that can be identified in a probabilistic experiment, and to which probabilities can be assigned.

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The collection of every potential result that can be derived from conducting a statistical test.