Question
Jump Company uses the direct method to prepare its statement of cash flows. Refer to the following information reported for 2019: Cost of Goods Sold,
Jump Company uses the direct method to prepare its statement of cash flows. Refer to the following information reported for 2019:
Cost of Goods Sold, $151,000
Merchandise Inventory, beginning balance, $30,000
Merchandise Inventory, ending balance, $65,000
Accounts Payable, beginning balance, $8,000
Accounts Payable, ending balance, 5,300
Operating expenses, $28,000
Accrued Liabilities, beginning balance, $2,900
Accrued Liabilities, ending balance, $6,500
Use the direct method to compute the cash paid to suppliers. (Accrued Liabilities relate to operating expenses.)
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