Martinez Installations Company Uses the Direct Method to Prepare Its

question 18

True/False

Martinez Installations Company uses the direct method to prepare its statement of cash flows.It has reported Cost of Goods Sold of $95,000 on its income statement for the year 2015.If the balance in the Inventory account has gone down by $6,000 during the year,then $6,000 will have to be added to $95,000 as part of the process to calculate payments to suppliers for inventory purchases.

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Definitions:

Transmittal

A message explaining why something is being sent.

Title Page

The initial page of a book, document, or report, containing the title, author's name, and often the publisher's information.

Machine Translation Software

A type of software that uses artificial intelligence to translate text or speech from one language to another automatically.

Justification Report

Report that justifies the need for a purchase, an investment, a new personnel line, or a change in procedure.