Use the Direct Method of Cash Flows to Answer the Question

question 120

Essay

Use the direct method of cash flows to answer the question.
$\begin{array} { l l } \text { Beginning A/R: } \$ 67,000 & \text { Beginning Inventory: } \$ 42,000 \\\text { Ending A/R: } \$ 79,000 & \text { Ending Inventory: } \$ 47,000 \\\text { Credit Sales: } \$ 745,000 & \text { Beginning A/P: } \$ 29,000 \\\text { Cost of Good Sold: } \$ 412,000 & \text { Ending A/P: } \$ 36,000\end{array}$
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Compute the change in accounts payable for the year.

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Definitions:

Federal Personal Income Tax

A tax levied by the U.S. federal government on the annual income of individuals, with rates varying based on income level.

President's Budget

An annual proposal by the U.S. President outlining the government's planned financial activities and spending for the upcoming fiscal year.

Office of Management and Budget

A federal office within the Executive Branch of the United States government that assists the President in preparing the budget and monitoring federal agencies.

Indirect Tax

A tax levied on goods and services rather than on income or profits.