The following selected account balances appeared on the financial statements of Washington Company:Accounts Receivable, January 1$16,126Accounts Receivable, December 317,405Accounts Payable, January 15,111Accounts Payable, December 317,854Merchandise Inventory, January 17,084Merchandise Inventory, December 3116,812Sales66,012Cost of Merchandise Sold33,620Washington Company uses the direct method to calculate net cash flow from operating activities. Cash payments for merchandise werea.$72,997b.$21,149c.$46,091d.$40,605

Cash payments for merchandise are found as beginning accounts payable plus purchases minus ending…

Answered: The following selected account balances…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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The following selected account balances appeared on the financial statements of Washington Company:

Accounts Receivable, January 1	$16,126
Accounts Receivable, December 31	7,405
Accounts Payable, January 1	5,111
Accounts Payable, December 31	7,854
Merchandise Inventory, January 1	7,084
Merchandise Inventory, December 31	16,812
Sales	66,012
Cost of Merchandise Sold	33,620

Washington Company uses the direct method to calculate net cash flow from operating activities. Cash payments for merchandise were

a.$72,997

b.$21,149

c.$46,091

d.$40,605

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