Pat Kinne is trying to calculate how much cash is being paid to suppliers of her firm's inventory during 2013. Cost of Goods Sold was reported at $190,500. Pat thinks she needs more data than are provided. From the following facts, could you show Pat how to calculate cash paid to suppliers as well as explain whether this method of computation is a part of the direct method or the indirect method?

Transcribed Image Text:

12/31/2013 $39,000 50,400 28,500 12/31/2012 $37,000 53,000 30,700 Accounts Receivable Merchandise Inventory Accounts Payable Notes Payable (used to buy Merchandise Inventory) Accrued Salaries 17,000 11,000 15,000 11,200