Monroe Corporation Reported a Decrease in Inventories of $30,000 and a Decrease

question 135

Multiple Choice

Monroe Corporation reported a decrease in inventories of $30,000 and a decrease in accounts payable of $15,000.Cost of goods sold totaled $110,000.Monroe uses the direct method to determine the net cash provided by operating activities on the statement of cash flows.What is the cost of goods sold adjusted to a cash basis?

• A) $65,000
• B) $105,000
• C) $95,000
• D) $155,000

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Definitions:

Kennedy

A reference to the prominent American political family, particularly John F. Kennedy, the 35th President of the United States (1961-1963).

Latin America

A region in the Western Hemisphere comprising countries where Romance languages—primarily Spanish and Portuguese, alongside French—are predominantly spoken.

Alliance For Progress

An initiative launched by U.S. President John F. Kennedy in 1961 aimed at establishing economic cooperation between the U.S. and Latin America.

Economic Aid

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