• Davis Company uses the direct method to prepare its statement of cash flows.Refer to the following information reported for the year 2014:
• Operating expenses, $26,000
• Accrued Liabilities, beginning balance, $3,000
• Accrued Liabilities, ending balance, $5,000
• What amount was paid to suppliers for operating expenses on a cash basis?
• $29,000
• $28,000
• $24,000
• $31,000