Question
The following selected account balances appeared on the financial statements of the Franklin Company. Use these balances to answer the question that follows. Accounts Receivable,
The following selected account balances appeared on the financial statements of the Franklin Company. Use these balances to answer the question that follows. Accounts Receivable, Jan. 1 $14,197 Accounts Receivable, Dec. 31 7,990 Accounts Payable, Jan. 1 4,130 Accounts Payable, Dec. 31 7,939 Inventory, Jan. 1 9,383 Inventory, Dec. 31 14,964 Sales 67,123 Cost of Goods Sold 31,651 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.
$31,651
$32,277
$34,049
$33,423
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