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Determining selected amounts for cash flows from operating activities—direct method Selected data taken from the accounting records of Ginis Inc. for the current year ended December 31 are as follows: Balance, December 31 Balance, January 1 Accrued expenses payable (operating expenses) $ 12,650 $ 14,030 Accounts payable (merchandise creditors) 96,140 105,800 Inventories 178,020 193,430 During the current year, the cost of merchandise sold was $1,031,550 and the operating expenses other than depreciation were $179,400. The direct method is used for presenting the cash flows from operating activities on the statement of cash flows. Determine the amount reported on the statement of cash flows for (a) cash payments for merchandise and (b) cash payments for operating expenses.

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Accounting

27th Edition
WARREN + 5 others
Publisher: Cengage Learning,
ISBN: 9781337272094
BuyFind

Accounting

27th Edition
WARREN + 5 others
Publisher: Cengage Learning,
ISBN: 9781337272094

Solutions

Chapter
Section
Chapter 16, Problem 16.21EX
Textbook Problem

Determining selected amounts for cash flows from operating activities—direct method

Selected data taken from the accounting records of Ginis Inc. for the current year ended December 31 are as follows:

 

Balance,

December 31

Balance,

January 1

Accrued expenses payable (operating expenses) $ 12,650 $ 14,030
Accounts payable (merchandise creditors) 96,140 105,800
Inventories 178,020 193,430

During the current year, the cost of merchandise sold was $1,031,550 and the operating expenses other than depreciation were $179,400. The direct method is used for presenting the cash flows from operating activities on the statement of cash flows.

Determine the amount reported on the statement of cash flows for (a) cash payments for merchandise and (b) cash payments for operating expenses.

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Chapter 16 Solutions

Accounting
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