Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The following selected account balances appeared on the financial statements of the Franklin Company. Use these balances to answer the question that follow. Accounts Receivable,

The following selected account balances appeared on the financial statements of the Franklin Company. Use these balances to answer the question that follow.

Accounts Receivable, Jan. 1 $14,908
Accounts Receivable, Dec. 31 7,421
Accounts Payable, Jan. 1 4,441
Accounts Payable, Dec. 31 9,329
Inventory, Jan. 1 7,409
Inventory, Dec. 31 14,882
Sales 66,027
Cost of Goods Sold 32,975

The Franklin Company uses the direct method to calculate net cash flow from operating activities. Assume that all accounts payable are owed to merchandise suppliers. Find the cash payments for merchandise.

Select the correct answer.

$35,574

$32,975

$32,989

$35,560

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Essentials Of Auditing And Assurance Services An Integrated Approach

Authors: Alvin A. Arens, Randal J. Elder, Mark S. Beasley, Al Arens

1st Edition

0130463035, 9780130463036

More Books

Students also viewed these Accounting questions

Question

c. Acafeteriawhere healthy, nutritionally balanced foods are served

Answered: 1 week ago

Question

c. What steps can you take to help eliminate the stress?

Answered: 1 week ago