The Changes in Northrup Corporation's Balance Sheet Account Balances for Last

question 7

Multiple Choice

The changes in Northrup Corporation's balance sheet account balances for last year appear below: The company's income statement for the year appears below: The company declared and paid $28,000 in cash dividends during the year. It did not dispose of any property, plant, and equipment during the year. The company uses the direct method to determine the net cash provided by operating activities. On the statement of cash flows, the cost of goods sold adjusted to a cash basis would be:

• A)$546,000
• B)$536,000
• C)$544,000
• D)$540,000

---

Definitions:

Pear Trees

Fruit-bearing trees of the genus Pyrus, known for their sweet, edible fruits.

Lost Profits

The potential income that a business could have generated, but was unable to due to a specific event or action.

Reasonable Shampoo

A hair care product that is considered to meet adequate quality standards and expectations for cleansing hair.

Manufactured

The process of producing goods using labor, machines, tools, and chemical or biological processing.