Springfield Company's Comparative Balance Sheets Included Inventory of $89,700 at December

question 89

Essay

Springfield Company's comparative balance sheets included inventory of $89,700 at December 31,2017,and $73,300 at December 31,2018.Springfield's comparative balance sheets also included accounts payable of $54,400 at December 31,2017,and $38,100 at December 31,2018.Springfield's accounts payable balances are composed solely of amounts due to suppliers for purchases of inventory on account.Cost of goods sold,as reported by Springfield on its 2018 income statement,amounted to $750,800.What is the amount of cash payments for inventory that Springfield will report in the Operating Activities section of its 2018 statement of cash flows assuming that the direct method is used?

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Definitions:

Tempered Frame Rails

Tempered Frame Rails are treated through tempering, a heat treatment process to increase the toughness of steel used in the frame rails of vehicles, enhancing strength and durability.

Extend Frame

The process or modification of increasing the length of a vehicle's frame or chassis for additional capacity or functionality.

Degrees

A unit of measurement for angles or temperature.

Crossmembers

Horizontal structures that provide support and stability to the chassis or frame of a vehicle.