Use the Direct Method of Cash Flows to Answer the Question

question 93

Short Answer

Use the direct method of cash flows to answer the question.
Beginning A/R: $68,000 Beginning Inventory: $42,500
Ending A/R: $79,000 Ending Inventory: $47,000
Credit Sales: $745,000 Beginning A/P: $29,000
Cost of Goods Sold: $412,000 Ending A/P: $36,300
Calculate the cash paid for merchandise for the year.

---

Definitions:

Continuously

describes an action or process that occurs in an unbroken, uninterrupted manner over a period of time.

Certain Range

A specific and defined span of values or conditions within which a variable or function is expected to operate or exist.

RAM Memory

Random Access Memory, a type of computer memory that can be accessed randomly, used for storing operating data and machine code.

Nonvolatile

Describes a type of memory or storage that retains data even when power is turned off, opposite to volatile memory which loses its content when power is lost.