Gladiator Inc

question 93

Multiple Choice

Gladiator Inc. uses the direct method to prepare its statement of cash flows. Refer to the following information reported for the year 2014: Cost of Goods Sold, $130,000
Inventory, beginning balance, $25,000
Inventory, ending balance, $65,000
Accounts Payable, beginning balance, $7,500
Accounts Payable, ending balance, $4,900
What is the amount of cash paid for merchandise inventory?

• A)$172,600
• B)$140,000
• C)$170,000
• D)$167,400

---

Definitions:

Germinal Period

The initial two weeks of prenatal development after conception, characterized by rapid cell division and the beginning of cell differentiation.

Blastocyst

An early stage of embryonic development that consists of a sphere of cells surrounding a fluid-filled cavity.

Embryo

The early stage of development in multicellular organisms, in humans this phase extends from the second to the eighth week of gestation.

Embryonic Layers

The three primary layers of cells (ectoderm, mesoderm, and endoderm) in an embryo that develop into different organs and tissues.