Pastel Paints Company Uses the Direct Method for Its Statement

question 137

Multiple Choice

Pastel Paints Company uses the direct method for its statement of cash flow.It reports the following information regarding the year 2014: From the income statement:
Sales Revenues,$265,000
Cost of Goods Sold,$210,000
Operating expenses,$31,000
From the balance sheet:

-On the statement of cash flows,what amount will be shown for payments to suppliers for inventory purchases? (Assume that Accounts Payable are for purchases of inventory only.)

• A)$204,300
• B)$211,800
• C)$196,800
• D)$208,200

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Definitions:

Physically Close

Proximity in space, being near to someone or something in distance.

Emotionally Close

A state of being deeply connected to another person on an emotional level.

Daughters

Female offspring in relation to their parents.

Sons

Male offspring or children of parents.