Parmesan Company Uses the Direct Method for Its Cash Flow

question 63

Multiple Choice

Parmesan Company uses the direct method for its cash flow statement.It reports the following information regarding the year 2016:
From the income statement:
Sales revenue,$266,000
Cost of sales,$215,000
Operating expenses,$31,000
From the balance sheet:
$$\begin{array} { | l | l | l | } \hline& { \text { Beginning balance } } & \text { Ending balance } \\\hline \text { Accounts receivable: } & \$ 14,600 & \$ 17,900 \\\hline \text { Inventory: } & 24,100 & 17,900 \\\hline \text { Accounts payable: } & 6000 & 13,500 \\\hline \text { Accrued liabilities: } & 4000 & 2000 \\\hline\end{array}$$

On the cash flow statement,what amount will be shown for payments to suppliers for inventory purchases? (Assume that Accounts payable are for purchases of inventory only.)

• A) $208,800
• B) $213,700
• C) $201,300
• D) $216,300

Recognize the importance of accounting for sex and gender differences in medical research and treatment.

Acknowledge the historical misuse of consent in medical studies and its implications.

Comprehend the role of genetic diversity within tissues and its medical implications.

Grasp the concept and goals of precision medicine.

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Definitions:

FASB Conceptual Framework

A theoretically based guide developed by the Financial Accounting Standards Board for creating financial accounting and reporting standards.

FASB Members

The individuals serving on the Financial Accounting Standards Board, responsible for establishing and improving standards of financial accounting and reporting in the U.S.

Securities And Exchange Commission

A government commission created by Congress to regulate the securities markets and protect investors in the United States, often abbreviated as SEC.

Accounting Principles

Fundamental concepts that guide the field of accounting, including principles like revenue recognition, matching, and the principle of conservatism.