Cathy Company reported the following information on its comparative balance sheets: Ending Balance Beginning Balance $90,000 $60,000 Inventory 10,000 Accounts Payable 5,000 All inventory purchases are made on account, and the accounts payable account is only used for these inventory purchases. If the income statement reports cost of goods sold for the period of $300,000, the statement of cash flows should report cash paid for inventory purchases of: O $330,000 O $325,000 O $385,000 $275,000 $335.000

Cathy Company reported the following information on its comparative balance sheets: Ending Balance Beginning Balance $90,000 $60,000 Inventory 10,000 Accounts Payable 5,000 All inventory purchases are made on account, and the accounts payable account is only used for these inventory purchases. If the income statement reports cost of goods sold for the period of $300,000, the statement of cash flows should report cash paid for inventory purchases of: O $330,000 O $325,000 O $385,000 $275,000 $335.000

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter11: The Statement Of Cash Flows

Section: Chapter Questions

Problem 12MCQ: Smoltz Company reported the following information for the current year: cost of goods sold,...

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