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Prowess Corp. reported $680,000 of Cost of Goods Sold for the year. Prowess uses Accounts receivable exclusively for sales transactions and uses Accounts payable exclusively
Prowess Corp. reported $680,000 of Cost of Goods Sold for the year. Prowess uses Accounts receivable exclusively for sales transactions and uses Accounts payable exclusively for transactions with inventory suppliers. Prowess reports the following balance sheet information: Inventory Accounts receivable Accounts payable Beginning balance $200,000 $80,000 $100,000 Ending balance $235,000 $92,000 $64,000 If the direct method was used, how much would be reported for Cash paid for inventory" on Prowess' statement of cash flows? Hint: Use your T-accounts
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