Lester Enterprises comparative balance sheets included inventory of $90,200 at December 31, 2009, and $70,600 at December

Question:

Lester Enterprises’ comparative balance sheets included inventory of $90,200 at December 31, 2009, and $70,600 at December 31, 2010. Lester’s comparative balance sheets also included of $57,700 at December 31, 2009, and $39,200 at December 31, 2010. Lester’s balances are composed solely of amounts due to suppliers for purchases of inventory on account. Cost of goods sold, as reported by Lester on its 2010 income statement, amounted to $770,900. What is the amount of cash payments for inventory that Lester will report in the Operating Activities section of its 2010 statement of cash flows assuming that the direct method is used?

Accounts Payable
Accounts payable (AP) are bills to be paid as part of the normal course of business.This is a standard accounting term, one of the most common liabilities, which normally appears in the balance sheet listing of liabilities. Businesses receive...