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

question 34

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

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Definitions:

Net Exports

The value of a country's total exports minus its total imports; it represents the net amount of goods and services exported to other countries.

Net Capital Outflow

The differential between citizens buying foreign assets and non-citizens purchasing assets within the country.

Real Interest Rates

The interest rate adjusted for inflation, representing the true cost of borrowing and the real yield to investors.

Net Capital Outflow

The difference between a nation's total investment in foreign countries and foreign investments within the nation, over a specified period of time.