The Data Given Below Are from the Accounting Records of Kain

question 55

Multiple Choice

The data given below are from the accounting records of Kain Company: Based on this information, the net cash flows from operating activities on the statement of cash flows using the indirect method would be

• A) $51,300.
• B) $50,000.
• C) $42,100.
• D) $44,700.

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Definitions:

Accounts Payable Period

The average number of days it takes for a business to pay its suppliers and vendors.

Inventory Period

The average time it takes for a company to convert its inventory into sales or the duration of the inventory cycle.

Inventory Period

The average time it takes for a company to turn its inventory into sales, reflecting the efficiency of inventory management.

COGS

Cost of Goods Sold, representing the direct costs attributable to the production of the goods sold by a company.