The Pasley Company prepares an income statement that reports cost of goods sold of $320,000, rent expense of $30,000, and salary expense of $90,000. During the year, prepaid rent went up $5,000, accounts payable went down $4,000, salary payable went up $3,000, and inventory went down $2,000. What is the amount of cash the company spent this year to purchase inventory? Responses Cash outflow of $322,000 Cash outflow of $450,000 Cash outflow of $454,000 Cash inflow of $454,000
The Pasley Company prepares an income statement that reports cost of goods sold of $320,000, rent expense of $30,000, and salary expense of $90,000. During the year, prepaid rent went up $5,000, accounts payable went down $4,000, salary payable went up $3,000, and inventory went down $2,000. What is the amount of cash the company spent this year to purchase inventory? Responses Cash outflow of $322,000 Cash outflow of $450,000 Cash outflow of $454,000 Cash inflow of $454,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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The Pasley Company prepares an income statement that reports cost of goods sold of $320,000, rent expense of $30,000, and salary expense of $90,000. During the year, prepaid rent went up $5,000, accounts payable went down $4,000, salary payable went up $3,000, and inventory went down $2,000. What is the amount of cash the company spent this year to purchase inventory?
Responses
-
Cash outflow of $322,000 -
Cash outflow of $450,000
-
Cash outflow of $454,000
-
Cash inflow of $454,000
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