The Following Information Was Provided by the Records of QRS

question 29

Multiple Choice

The following information was provided by the records of QRS for the current reporting year: $\begin{array}{|l|r|}\hline \text { Cost of goods sold (as reported on the income statement) .. } & \$ 80,000 \\\hline \text { Inventory increase } & 20,000 \\\hline \text { Accounts payable increase } & 3,000 \\\hline\end{array}$ The cash paid to suppliers was:

• A)$63,000
• B)$77,000
• C)$80,000
• D)$97,000

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Definitions:

Free Cash Flow

The amount of cash generated by a business after accounting for capital expenditures, essential for maintaining or expanding assets.

Operating Activities

Transactions and events that relate to the principal revenue-generating activities of the company.

Financing Activity

Transactions that result in changes to the size and composition of the equity capital or borrowings of a company, as reported in the cash flow statement.

Financing Activities

Transactions and events that involve changes in the size and composition of the equity and borrowings of a company.