Assume that a company provided the following statement of cash flows (all sales are on account): Operating activities: Net income $ 45 Adjustments to convert net income to a cash basis: Depreciation $ 15 Decrease in accounts receivable 2 Increase in inventory (10) Increase in accounts payable 4 11 Net cash provided by (used in) operating activities 56 Investing activities: Additions to property, plant, & equipment (40) Net cash provided by (used in) investing activities (40) Financing activities: Issuance of common stock 5 Cash dividends paid (14) Net cash provided by (used in) financing activities (9) Net increase in cash and cash equivalents 7 Beginning cash and cash equivalents 6 Ending cash and cash equivalents $ 13 If the company’s cost of goods sold was $138, then its cash paid inventory purchases was: Garrison 17e Rechecks 2020-10-02 Multiple Choice $144. $132. $148. $128.
Assume that a company provided the following statement of cash flows (all sales are on account): Operating activities: Net income $ 45 Adjustments to convert net income to a cash basis: Depreciation $ 15 Decrease in accounts receivable 2 Increase in inventory (10) Increase in accounts payable 4 11 Net cash provided by (used in) operating activities 56 Investing activities: Additions to property, plant, & equipment (40) Net cash provided by (used in) investing activities (40) Financing activities: Issuance of common stock 5 Cash dividends paid (14) Net cash provided by (used in) financing activities (9) Net increase in cash and cash equivalents 7 Beginning cash and cash equivalents 6 Ending cash and cash equivalents $ 13 If the company’s cost of goods sold was $138, then its cash paid inventory purchases was: Garrison 17e Rechecks 2020-10-02 Multiple Choice $144. $132. $148. $128.
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Assume that a company provided the following statement of
| Operating activities: | ||
|---|---|---|
| Net income | $ 45 | |
| Adjustments to convert net income to a cash basis: | ||
| $ 15 | ||
| Decrease in |
2 | |
| Increase in inventory | (10) | |
| Increase in accounts payable | 4 | 11 |
| Net cash provided by (used in) operating activities | 56 | |
| Investing activities: | ||
| Additions to property, plant, & equipment | (40) | |
| Net cash provided by (used in) investing activities | (40) | |
| Financing activities: | ||
| Issuance of common stock | 5 | |
| Cash dividends paid | (14) | |
| Net cash provided by (used in) financing activities | (9) | |
| Net increase in cash and cash equivalents | 7 | |
| Beginning cash and cash equivalents | 6 | |
| Ending cash and cash equivalents | $ 13 |
If the company’s cost of goods sold was $138, then its cash paid inventory purchases was:
Garrison 17e Rechecks 2020-10-02
Multiple Choice
-
$144.
-
$132.
-
$148.
-
$128.
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