A firm reports $180,000 cost of goods sold in its income statement. Beginning and ending inventory are $30,000 and $25,000, respectively. Beginning and ending accounts payable are $10,000 and $12,000, respectively. Accounts payable is used exclusively for inventory purchases.

What is the amount of cash paid for inventory? Note: your answer should be formatted as a whole number without currency symbols or punctuation.

What is the "net" dollar adjustment needed in the operating section of the cash flow statement under the indirect method? 

If the adjustment is a subtraction, indicate so with a negative number. 

Calculate the adjustment for accounts payable and the adjustment for inventory and net them. (Note: This is a challenging question). Note: your answer should be formatted as a whole number without currency symbols or punctuation.

 

Answer rating: 100% (QA)

1 Amount of Cash Paid for Inventory Cost of Goods Sold 180000 Beginning Inventory 30000 Endi... View the full answer