Van Aalst Company's Comparative Balance Sheet and Income Statement for Last

question 32

Multiple Choice

Van Aalst Company's comparative balance sheet and income statement for last year appear below: The company declared and paid $77,000 in cash dividends during the year. It did not sell or retire 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)$350,000
• B)$383,000
• C)$317,000
• D)$334,000

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Definitions:

Finance Perspective

An approach or viewpoint focusing on the management, creation, and study of money, banking, credit, investments, assets, and liabilities.

Pro Forma Financial Statements

Pro forma financial statements are financial reports that a company prepares based on hypothetical scenarios or assumptions, often used for future planning or investment analysis.

Key Elements

Fundamental or essential components that constitute the basis or core of something.

Sustain Growth

The ability of an organization or economy to increase its output or income over a period while maintaining financial and environmental balance.