Gladiator,Inc

question 88

Multiple Choice

Gladiator,Inc.uses the direct method to prepare its statement of cash flows.Use the following information reported for 2016 to compute the amount of cash paid for merchandise inventory.
Cost of Goods Sold,$135,000
Merchandise Inventory,beginning balance,$26,000
Merchandise Inventory,ending balance,$66,000
Accounts Payable,beginning balance,$7,900
Accounts Payable,ending balance,$5,100

• A)$177,800
• B)$95,000
• C)$175,000
• D)$172,200

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Definitions:

Real Limits

Values of a variable located halfway between the top of one interval and the bottom of the next interval.

Variable

An element, feature, or factor that is liable to vary or change within a study or experiment, representing different data points that can be measured or recorded.

Cumulative Percent

A measure that shows the proportion of data points below a certain value, typically used in percentile rankings or distributions.

Frequency Distribution

A summary of how often each different value occurs in a dataset.