The Simplex Company reported cost of goods sold on its income statement of $10,000. The following account balances appeared on the company's comparative balance sheet for the same year: Data shows the ending and beginning balances of the accounts: Inventory $22,000 $20,000; Accounts Payable $14,000 $11,000 The company uses the indirect method to determine the net cash provided by operating activities. The cost of goods sold, adjusted to a cash basis, on the company's statement of cash flows for the year would be: a. $11,000 b. $10,000 c. $9,000 d. $5,000
The Simplex Company reported cost of goods sold on its income statement of $10,000. The following account balances appeared on the company's comparative balance sheet for the same year: Data shows the ending and beginning balances of the accounts: Inventory $22,000 $20,000; Accounts Payable $14,000 $11,000 The company uses the indirect method to determine the net cash provided by operating activities. The cost of goods sold, adjusted to a cash basis, on the company's statement of cash flows for the year would be: a. $11,000 b. $10,000 c. $9,000 d. $5,000
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter11: The Statement Of Cash Flows
Section: Chapter Questions
Problem 12MCQ: Smoltz Company reported the following information for the current year: cost of goods sold,...
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The Simplex Company reported cost of goods sold on its income statement of $10,000. The following account balances appeared on the company's comparative balance sheet for the same year: Data shows the ending and beginning balances of the accounts: Inventory $22,000 $20,000; Accounts Payable $14,000 $11,000 The company uses the indirect method to determine the net cash provided by operating activities. The cost of goods sold, adjusted to a cash basis, on the company's statement of
a. $11,000
b. $10,000
c. $9,000
d. $5,000
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