Total cost of food sold expense was recorded as $47,250 on the income statement. The food inventory account had a beginning balance of $5,500 and an ending balance of $4,000. How much cash was disbursed for food purchases during the year?

Total cost of food sold expense was recorded as $47,250 on the income statement. The food inventory account had a beginning balance of $5,500 and an ending balance of $4,000. How much cash was disbursed for food purchases during the year?

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter4: Job Order Costing

Section: Chapter Questions

Problem 6EB: Langstons purchased $3,100 of merchandise during the month, and its monthly income statement shows a...

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Question

Total cost of food sold expense was recorded as $47,250 on the income statement. The food inventory account had a beginning balance of $5,500 and an ending balance of $4,000. How much cash was disbursed for food purchases during the year?

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Step 1

Statement of cash flows: Cash flow statement is also known as statement of cash flows. It is a financial statement that shows the changes in balance sheet accounts and income affect cash and cash equivalents. It breaks the analysis into operating, investing, and financing activities.

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