Parmesan Company Uses the Direct Method for Its Statement of Cash

question 71

Multiple Choice

Parmesan Company uses the direct method for its statement of cash flow. It reports the following information regarding the year 2013: From the income statement:
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

---

Definitions:

Permissive Items

May be included in collective bargaining if both parties agree.

Businesslike Approach

This term refers to dealing with matters or conducting oneself in a professional, efficient, and methodical manner.

Contingent Workers

Workers who are hired on a temporary basis or on a contract that differs from a permanent employment, often without the same level of job security or benefits.

Antiunionization Strategies

Techniques employed by some employers to prevent or minimize union presence and influence within their organization.