Parmesan Company Uses the Direct Method for Its Statement of Cash

question 146

Multiple Choice

Parmesan Company uses the direct method for its statement of cash flow. It reports the following information regarding the year 2013:
$$\begin{array}{l}\text { From the income statement: }\\\begin{array} { l r } \text { Revenues: } & \$ 240,000 \\\text { Cost of goods sold: } & \$ 190,000 \\\text { Operating expenses: } & \$ 25,000\end{array}\\\begin{array} { c c c } \text { From the balance sheet: } & \text { Beginning balance } & \text { Ending balance } \\\text { Accounts receivable: } & \$ 12,000 & \$ 15,000 \\\text { Inventory: } & \$ 22,000 & \$ 18,000 \\\text { Accounts payable: } & \$ 7,000 & \$ 12,000 \\\text { Accrued liabilities: } & \$ 3,000 & \$ 1,200\end{array}\end{array}$$
- On the statement of cash flows, what amount will be shown for payments to suppliers for inventory purchases? (Please assume that accounts payable are for purchases of inventory only.)

• A) $185,000
• B) $194,000
• C) $181,000
• D) $191,000

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Definitions:

Facial Expressions

The use of facial muscles to convey emotions, thoughts, or reactions, serving as a key component of nonverbal communication.

Gestures

Movements of the body or limbs that express or emphasize an idea, sentiment, or attitude.

Eye Contact

The act of looking directly into another person's eyes, which can communicate attention, interest, or various emotional states.

Vocal Characteristics

The unique qualities and features of a person's voice, including tone, pitch, and speed, which can convey emotions and attitudes.