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The Pasley Company prepares an income statement that reports cost of goods sold of $320,000, rent expense of $30,000, and salary expense of $90,000. During the year, prepaid rent went up $5,000, accounts payable went down $4,000, salary payable went up $3,000, and inventory went down $2,000. What is the amount of cash the company spent this year to purchase inventory?     Responses Cash outflow of $322,000 Cash outflow of $450,000 Cash outflow of $454,000 Cash inflow of $454,000

The Pasley Company prepares an income statement that reports cost of goods sold of $320,000, rent expense of $30,000, and salary expense of $90,000. During the year, prepaid rent went up $5,000, accounts payable went down $4,000, salary payable went up $3,000, and inventory went down $2,000. What is the amount of cash the company spent this year to purchase inventory?     Responses Cash outflow of $322,000 Cash outflow of $450,000 Cash outflow of $454,000 Cash inflow of $454,000

Cornerstones of Financial Accounting
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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The Pasley Company prepares an income statement that reports cost of goods sold of $320,000, rent expense of $30,000, and salary expense of $90,000. During the year, prepaid rent went up $5,000, accounts payable went down $4,000, salary payable went up $3,000, and inventory went down $2,000. What is the amount of cash the company spent this year to purchase inventory?
 
 
Responses
  • Cash outflow of $322,000
  • Cash outflow of $450,000
  • Cash outflow of $454,000
  • Cash inflow of $454,000
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