Last Year Marton Corporation Reported a Cost of Goods Sold

question 12

Multiple Choice

Last year Marton Corporation reported a cost of goods sold of $720,000 on its income statement.The following additional data were taken from the company's comparative balance sheet for the year:
The company uses the direct method to determine the net cash provided by (used in) operating activities on the statement of cash flows.The cost of goods sold adjusted to a cash basis would be:

• A) $740,000
• B) $767,000
• C) $747,000
• D) $673,000

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Definitions:

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