Wolfs comparative balance sheets included inventory of $45,000 at December 31, 2009, and $63,000 at December 31, 2010 The comparative balance sheets also included accounts payable of $33,000 at December 31, 2009, and $39,000 at December 31, 2010 Wolfs accounts payable balances are composed solely o...

Cash payments for inventory to be reported in the Operating Activities section of Wolfs 2010 stat ...

Wolfs comparative balance sheets included inventory of $45,000 at December 31, 2009, and $63,000 at December 31,

Question:

Wolf’s comparative balance sheets included inventory of $45,000 at December 31, 2009, and $63,000 at December 31, 2010. The comparative balance sheets also included of $33,000 at December 31, 2009, and $39,000 at December 31, 2010. Wolf’s balances are composed solely of amounts due to suppliers for purchases of inventory on account. Cost of goods sold, as reported on the 2010 income statement, amounted to $120,000. What is the amount of cash payments for inventory that Wolf will report in the Operating Activities section of its 2010 statement of cash flows assuming that the direct method is used?

Accounts Payable
Accounts payable (AP) are bills to be paid as part of the normal course of business.This is a standard accounting term, one of the most common liabilities, which normally appears in the balance sheet listing of liabilities. Businesses receive...