Leander Corp. reported the following items in its 20X5 financial statements: 20X5 20X4 From the SFP: Inventory,

Leander Corp. reported the following items in its 20X5 financial statements:

Inventories are carried at FIFO cost, net of an allowance to reduce finished goods inventory to the lower of cost or NRV of $32,500 (20X4, $23,000).

At year end, the company has outstanding purchase commitments in the amount of $6,700 (20X4, $3,300). The market value of these goods is equal to, or exceeds, the purchase commitment cost except as accrued in the financial statements.

Required:

1. What items would appear on the cash flow statement as a result of the inventory transactions of the year? Assume the use of the indirect method of presentation in the operating activities section.

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20X5 20X4 From the SFP: Inventory, at lower of cost or market $ 475,500 $ 420,500 Accounts payable 308,000 298,000 Estimated liability on noncancellable purchase 4,000 commitments From the SC: Cost of goods sold $2,450,000 $2,050,300 Loss on purchase commitment 4,000 "Includes loss due to decline in market value From the notes: