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:

Audiometer

An electronic device used to evaluate hearing loss by measuring a person’s ability to hear various sound frequencies.

Otoscope

A medical device used for examining the ear's interior to diagnose ear conditions and infections.

Myringoscope

An instrument used for examining the eardrum or tympanic membrane.

Otosclerosis

A condition in which abnormal bone growth around the stapes bone leads to hearing loss.