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:

Local Variable

A variable that is declared within a function or block, accessible only to that function or block, and has its scope limited to that context.

Calling Function

The process by which a function is invoked or executed in a program.

Function Returns

Describes the process of sending a value back to the point where a function was called.