In its year end income statement, Black Knights Company reported cost of goods sold of $ 450,000 Changes occurred in several balance sheet accounts during the year as follows Inventory $ 160,000 Accounts payablesuppliers $ 40,000 Net income $ 650,000 Depreciation expense $ 93,000 Equity in earnings...

Choice b is correct In order to compute the cash paid ...

In its year-end income statement, Black Knights Company reported cost of goods sold of $ 450,000. Changes

Question:

In its year-end income statement, Black Knights Company reported cost of goods sold of $ 450,000. Changes occurred in several accounts during the year as follows:
Inventory……………………………………… $ 160,000
Accounts payable–suppliers………………....... $ 40,000
Net income……………………………………. $ 650,000
Depreciation expense………………………….. $ 93,000
Equity in earnings of unconsolidated affiliate… $ 61,000
Gain on sale of fixed assets…………………… $ 4,000
Increase in accounts receivable……………….. $ 25,000
Decrease in inventory…………………………. $ (57,000)
Decrease in fixed assets………………………. $ 38,000
Increase in accounts payable………………….. $ 42,000
Decrease in notes payable……………………... $ (75,000)
What amount should the Black Knights Company report as cash paid to suppliers in its cash flow statement, prepared under the direct method?
a. $ 250,000
b. $ 330,000
c. $ 570,000
d. $ 650,000
Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...