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Crossword,Inc Use the Direct Method to Compute the Payments to Suppliers

question 15

Multiple Choice

Crossword,Inc.uses the direct method to prepare its statement of cash flows.Refer to the following financial statement information for the year ended December 31,2017: $Crossword,Inc.uses the direct method to prepare its statement of cash flows.Refer to the following financial statement information for the year ended December 31,2017: \begin{array}{c} \text {Crossword, Inc.}\\ \text {Comparative Balance Sheet}\\ \text {December 31, 2017 and 2016}\\\begin{array}{|l|r|l|} \hline & 2017 & 2016 \\ \hline \text { Sales Revenue } & \$ 289,300 & \\ \hline \text { Interest Revenue } & 3,00 & \\ \hline \text { Gain on Sale of Plant Assets } & 6,000 & \\ \hline \text { Total Revenues and Gains } & & \$ 298,300 \\ \hline \text { Cost of Goods Sold } & 146,500 \\ \hline \text { Salaries and Wages Expense } & 49,000 \\ \hline \text { Depreciation Expense - Plant Assets } & 16,000 \\ \hline \text { Other Operating Expense } & 23,500 \\ \hline \text { Interest Expense } & 3,500 \\ \hline \text { Income Tax Expense } & \text { 7,800 } \\ \hline \text { Total Expenses } & & 246,300 \\ \hline \text { Net Income } & & \$ 52,000 \\ \hline \end{array}\end{array} Use the direct method to compute the payments to suppliers for Merchandise Inventory and other operating expenses.(Accrued Liabilities relate to other operating expense. ) A) $197,000 B) $177,500 C) $19,500 D) $201,000$ $\begin{array}{c}\text {Crossword, Inc.}\\\text {Comparative Balance Sheet}\\\text {December 31, 2017 and 2016}\\\begin{array}{|l|r|l|}\hline & 2017 & 2016 \\\hline \text { Sales Revenue } & \$ 289,300 & \\\hline \text { Interest Revenue } & 3,00 & \\\hline \text { Gain on Sale of Plant Assets } & 6,000 & \\\hline \text { Total Revenues and Gains } & & \$ 298,300 \\\hline \text { Cost of Goods Sold } & 146,500 \\\hline \text { Salaries and Wages Expense } & 49,000 \\\hline \text { Depreciation Expense - Plant Assets } & 16,000 \\\hline \text { Other Operating Expense } & 23,500 \\\hline \text { Interest Expense } & 3,500 \\\hline \text { Income Tax Expense } & \text { 7,800 } \\\hline \text { Total Expenses } & & 246,300 \\\hline \text { Net Income } & & \$ 52,000 \\\hline\end{array}\end{array}$ Use the direct method to compute the payments to suppliers for Merchandise Inventory and other operating expenses.(Accrued Liabilities relate to other operating expense. )

Definitions:

African Slaves

People from Africa who were forcibly transported to the New World and sold into chattel slavery, primarily between the 16th and 19th centuries.

Rice Cultivation

The practice of growing rice as a crop, which is a staple food in many parts of the world, especially in Asia.

Louisiana Code Noir

A set of laws enacted in 1724 governing the conduct, treatment, and legal status of slaves in the French colony of Louisiana.

Slaves

People who are owned and compelled to work for others, often without any personal freedoms or rights, historically prevalent across various societies.