(Appendix 14A) Hayward Corporation Had Net Sales of $610,000 and Cost

question 28

Multiple Choice

(Appendix 14A) 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:

Accounting Entities

Organizations, businesses, or units for which separate financial statements are prepared, distinct from any other economic activities.

Generally Accepted Accounting Principles

A standard framework of guidelines for financial accounting that includes the details, complexities, and legalities of business and corporate accounting.

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An evaluation, typically by an independent entity, to ensure that an organization's financial records and statements are accurate and in accordance with laws and regulations.

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