The following information was taken from the 2021 financial statements of Jenny Gardner Corporation: Inventory, January 1, 2021 Inventory, December 31, 2021 Accounts payable, January 1, 2021 Accounts payable, December 31, 2021 Sales revenue Cost of goods sold $ 180,000 240,000 150,000 240,000 $830,000 $950,000 $890,000 $770,000 1,200,000 800,000 If the direct method is used in the 2021 statement of cash flows, what amount should Jenny Gardner report as cash payments to suppliers?

The following information was taken from the 2021 financial statements of Jenny Gardner Corporation: Inventory, January 1, 2021 Inventory, December 31, 2021 Accounts payable, January 1, 2021 Accounts payable, December 31, 2021 Sales revenue Cost of goods sold $ 180,000 240,000 150,000 240,000 $830,000 $950,000 $890,000 $770,000 1,200,000 800,000 If the direct method is used in the 2021 statement of cash flows, what amount should Jenny Gardner report as cash payments to suppliers?

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Description: The following information was taken from the 2021 financial statements of Jenny GardnerCorporation:Inventory, January 1, 2021Inventory, December 31, 2021Accounts payable, January 1, 2021Accounts payable, December 31, 2021Sales revenueCost of goods s

FINANCIAL ACCOUNTING

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ISBN:9781259964947

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Chapter1: Financial Statements And Business Decisions

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Concept explainers

Inventory Valuation

Before discussing the topic inventory valuation let’s discuss the meaning of inventory. In accounting, inventory is also known as stock. Inventory means all the finished goods, materials, merchandise that a business holds for the purpose of selling it in the market with the motive of earning profit.

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Question

The following information was taken from the 2021 financial statements of Jenny Gardner
Corporation:
Inventory, January 1, 2021
Inventory, December 31, 2021
Accounts payable, January 1, 2021
Accounts payable, December 31, 2021
Sales revenue
Cost of goods sold
$ 180,000
240,000
150,000
240,000
1,200,000
800,000
If the direct method is used in the 2021 statement of cash flows, what amount should Jenny
Gardner report as cash payments to suppliers?
$830,000
$950,000
$890,000
$770,000

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