Orange Company provided the following data for the current year: Sales 20,000,000 Cost of goods sold 10,600,000 Operating expenses 7,600,000 December 31 balances Prepaid operating expenses 2,000,000 Accounts payable 2,700,000 Inventory 5,000,000 Accounts receivable 2,800,000 January 1 balances Prepaid operating expenses 1,400,000 Accounts payable 2,400,000 Inventory 4,200,000 Accounts receivable 2,750,000 Under the cash basis, what amount should be reported as purchases for the current year? A. 10,100,000 B. 11,400,000 C. 11,100,000 D. 10,300,000
Orange Company provided the following data for the current year: Sales 20,000,000 Cost of goods sold 10,600,000 Operating expenses 7,600,000 December 31 balances Prepaid operating expenses 2,000,000 Accounts payable 2,700,000 Inventory 5,000,000 Accounts receivable 2,800,000 January 1 balances Prepaid operating expenses 1,400,000 Accounts payable 2,400,000 Inventory 4,200,000 Accounts receivable 2,750,000 Under the cash basis, what amount should be reported as purchases for the current year? A. 10,100,000 B. 11,400,000 C. 11,100,000 D. 10,300,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Orange Company provided the following data for the current year:
Sales 20,000,000
Cost of goods sold 10,600,000
Operating expenses 7,600,000
December 31 balances
Prepaid operating expenses 2,000,000
Accounts payable 2,700,000
Inventory 5,000,000
January 1 balances
Prepaid operating expenses 1,400,000
Accounts payable 2,400,000
Inventory 4,200,000
Accounts receivable 2,750,000
Under the cash basis, what amount should be reported as purchases for the current year?
A. 10,100,000
B. 11,400,000
C. 11,100,000
D. 10,300,000
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