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

question 54

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 cost of goods sold adjusted to a cash basis (i.e. ,cash paid to suppliers) ?

• A)$345,000
• B)$366,000
• C)$379,000
• D)$373,000

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Definitions:

Foreign Taxes Paid

Taxes paid to a foreign government for income earned in that foreign country, which may be creditable or deductible on a U.S. tax return.

Itemized Deduction

Deductions that taxpayers can claim for certain personal expenses, instead of taking a standard deduction. These can include expenses for healthcare, taxes, interest, and gifts to charity.

Foreign Tax Credit

A nonrefundable tax credit for income taxes paid to a foreign government, aimed at reducing double taxation.

Qualified Adoption Expenses

include necessary costs directly related to and for the principal purpose of the legal adoption of a child, which under certain circumstances, can be tax deductible.