Hayward Corporation Had Net Sales of $610,000 and Cost of Goods

question 202

Multiple Choice

Hayward Corporation had net sales of $610,000 and cost of goods sold of $360,000 for the just completed year. Shown below are the beginning and ending balances for the year of various accounts: The company prepares its statement of cash flows using the direct method.On its statement of cash flows, what amount should Howard show for its cost of goods sold adjusted to a cash basis (i.e., cash paid to suppliers) ?

• A) $345,000
• B) $366,000
• C) $379,000
• D) $373,000

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Definitions:

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Two-Year Warranty

A guarantee provided by a seller or manufacturer to repair or replace defective goods for two years after purchase.

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