The following information was reported by three companies. When completing the requirements, assume that any and all purchases on account are for inventory.

	Oak Associates	Ames Companies	Tobias Industries
Cost of goods sold	$ 227,000	$ 200,000	$ 428,000
Inventory purchases from suppliers made using cash	265,000	0	226,000
Inventory purchases from suppliers made on account	0	213,000	265,000
Cash payments to suppliers on account	0	165,000	225,000
Beginning inventory	113,000	121,000	213,000
Ending inventory	151,000	134,000	276,000
Beginning accounts payable	0	137,000	93,000
Ending accounts payable	0	185,000	133,000

Required:

1. What amount did each company deduct on the income statement related to inventory?
2. What total amount did each company pay out in cash during the period related to inventory purchased with cash and on account?
3. By what amount do your answers in requirements 1 and 2 differ for each company?
4. By what amount did each companys inventory increase (decrease)? By what amount did each companys accounts payable increase (decrease)?
5. Using the indirect method of presentation, what amount(s) must each company add (deduct) from net income to convert from accrual to cash basis?

Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Required 5 What amount did each company deduct on the income statement related to inventory? Oak Associates Ames Companies Tobias Industries $ 227,000 $ 200,000 $ 428,000 Cost of Goods Sold Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Required 5 What total amount did each company pay out in cash during the period related to inventory purchased with cash and on account? Oak Associates Ames Companies Tobias Industries Total Cash Paid Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Required 5 By what amount do your answers in requirements 1 and 2 differ for each company? Oak Associates Ames Companies Tobias Industries Difference Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Required 5 By what amount did each company's inventory increase (decrease)? By what amount did each company's accounts payable increase (decrease)? Oak Associates Ames Companies Tobias Industries Inventory Accounts Payable Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Required 5 Using the indirect method of presentation, what amount(s) must each company add (deduct) from net income to convert from accrual to cash basis? Oak Associates Ames Companies Tobias Industries Inventory Accounts Payable Total