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

question 92

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:

Productivity

Output per unit of input; efficiency with which resources are used.

Acre of Land

A unit of area used in the United States and the United Kingdom, equivalent to 43,560 square feet.

Price Mechanism

The system by which the forces of supply and demand determine the prices of goods and services and allocate resources in an economy.

Usury Laws

Regulations governing the amount of interest that can be charged on a loan, intended to prevent lenders from imposing excessively high interest rates.