Question
Last year Maine Company reported cost of goods sold of $110,000. Inventories increased by $30,000 during the year, and accounts payable decreased by $15,000. The
Last year Maine Company reported cost of goods sold of $110,000. Inventories increased by $30,000 during the year, and accounts payable decreased by $15,000. The company uses the direct method to determine the net cash flows from operating activities on the statement of cash flows. The cost of goods sold adjusted to a cash basis would be:
a.$140,000.
b.$155,000.
c.$65,000.
d.$125,000.
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College Accounting A Practical Approach
Authors: Jeffrey Slater, Brian Zwicker
12th Canadian edition
133133230, 978-0133133233
