Maddox Industries Reported an Increase in Inventories of $20,000 and a Decrease

question 69

Multiple Choice

Maddox Industries reported an increase in inventories of $20,000 and a decrease in accounts payable of $10,000.Cost of goods sold totaled $120,000.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) $90,000
• B) $110,000
• C) $120,000
• D) $150,000

---

Definitions:

Mortgage Loan

A loan secured by real property through the use of a mortgage note.

Loan Up-To-Date

A loan status indicating that all payments are current and no installment is overdue.

Scheduled Date

A pre-arranged date on which an event is planned to occur, such as a payment or meeting.

Compounded Annually

An interest calculation method where interest is added to the principal once per year, affecting the investment's growth over time.