Masthead Company's comparative balance sheets included inventory of $180,400 at December 31, 2016, and $241,200 at December 31, 2017. Masthead's
Masthead Company's comparative balance sheets included inventory of $180,400 at December 31, 2016, and $241,200 at December 31, 2017. Masthead's comparative balance sheets also included accounts payable of $85,400 at December 31, 2016, and $78,400 at December 31, 2017. Masthead's accounts payable balances are composed solely of amounts due to suppliers for purchases of inventory on account. Cost of goods sold, as reported by Masthead on its 2017 income statement, amounted to $1,200,000.
What is the amount of cash payments for inventory that Masthead will report in the Operating Activities category of its 2017 statement of cash flows assuming that the direct method is used?Accounts Payable
Accounts payable (AP) are bills to be paid as part of the normal course of business.This is a standard accounting term, one of the most common liabilities, which normally appears in the balance sheet listing of liabilities. Businesses receive...
This problem has been solved!
Step by Step Answer: