Hayward Corporation Had Net Sales of $610,000 and Cost of Goods

question 39

Multiple Choice

Hayward Corporation had net sales of $610,000 and cost of goods sold of $360,000 for the just completed year. Shown below are the beginning and ending balances for the year of various accounts: The company prepares its statement of cash flows using the direct method. On its statement of cash flows, what amount should Howard show for its net sales adjusted to a cash basis (i.e., cash received from sales) ?

• A)$616,000
• B)$623,000
• C)$625,000
• D)$595,000

---

Definitions:

Owner's Equity Statement

A financial document showing the starting balance, additions and subtractions, and the ending balance of the owner’s equity account.

Freight-In

The cost associated with transporting goods into a business from suppliers, considered part of the cost of purchasing inventory.

Income Statement

A financial statement that shows the company's revenue and expenses over a specific period, resulting in net profit or loss.

Balance Sheet

A business document displaying a firm’s assets, debts, and owner's equity at a particular moment.