Designer Paints Company Uses the Direct Method for Preparing Its

question 34

Multiple Choice

Designer Paints Company uses the direct method for preparing its statement of cash flow.Designer Paints reports the following information regarding 2018: From the income statement:
Sales Revenues,$267,000
Cost of Goods Sold,$213,000
Operating Expenses,$33,000
From the balance sheet:
$$\begin{array} { | l | r | r | } \hline & \text { Beginning Balance } & \text { Ending Balance } \\\hline \text { Accounts Receivable } & \$ 14,500 & \$ 17,900 \\\hline \text { Merchandise Inventory } & 24,100 & 18,400 \\\hline \text { Accounts Payable } & 6900 & 13,500 \\\hline \text { Accrued Liabilities } & 4800 & 1600 \\\hline\end{array}$$ What amount will be shown for payments to suppliers for Merchandise Inventory purchases? (Assume that Accounts Payable are for purchases of merchandise inventory only.)

• A) $207,300
• B) $213,900
• C) $200,700
• D) $212,100

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Definitions:

Parasympathetic Nervous System

A division of the autonomic nervous system responsible for conserving energy and restoring the body to a resting state after periods of stress or danger.

Insula

A portion of the cerebral cortex folded deep within the lateral sulcus (the grove separating the temporal lobe from the rest of the cortex) involved in the processing of emotions, bodily sensations, and autonomic control.

Parasympathetic Nervous System

Part of the autonomic nervous system responsible for rest and digestion, counterbalancing the sympathetic nervous system.

Sympathetic Nervous System

A part of the autonomic nervous system responsible for the body's 'fight or flight' response during stressful or threatening situations.