Mei Company Uses the Direct Method to Prepare Its Statement

question 136

Multiple Choice

Mei Company uses the direct method to prepare its statement of cash flows.Refer to the following information reported for 2017: Cost of Goods Sold,$150,000
Merchandise Inventory,beginning balance,$26,000
Merchandise Inventory,ending balance,$64,000
Accounts Payable,beginning balance,$8,100
Accounts Payable,ending balance,$5,000
Operating expenses,$31,000
Accrued Liabilities,beginning balance,$2,500
Accrued Liabilities,ending balance,$6,400
Use the direct method to compute the cash paid to suppliers.(Accrued Liabilities relate to operating expenses. )

• A)$162,800
• B)$164,000
• C)$191,100
• D)$218,200

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Definitions:

Oral Airway

A medical device used to keep the airway open by preventing the tongue from covering the epiglottis, often used in emergency situations or anesthesia.

Postanesthesia Care Unit

A specialized hospital unit where patients are closely monitored for recovery after undergoing anesthesia, before being transferred to another unit or discharged.

Nasotracheal Suctioning

A medical procedure that involves the insertion of a suction catheter through the nose into the trachea to clear the airway of secretions.

Ventilator Patients

Individuals who require mechanical assistance to breathe, often through the use of a machine called a ventilator.