2 Saved Kettleman Corp. uses the Accounts payable account for amounts owed to both inventory suppliers...

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2 Saved Kettleman Corp. uses the Accounts payable account for amounts owed to both inventory suppliers and other vendors, such as the utility company. Kettleman is preparing its statement of cash flows under the direct method and trying to figure out "Cash paid for inventory and operating expenses". The accountant pulls the following information: Revenue: $500,000 Cost of Goods Sold: $275,000 Operating expenses: $80,000 Inventory: $37,000 (beginning) and $52,000 (ending) Accounts receivable: 50,000 (beginning) and $62,000 (ending) Accounts payable: $90,000 (beginning) and $73,500 (ending) Prepaid expenses: $4,000 (beginning) and $12,000 (ending) What amount should Kettleman report for "Cash paid for inventory and operating expenses"? Numeric Response Help Save & Exit 2 Saved Kettleman Corp. uses the Accounts payable account for amounts owed to both inventory suppliers and other vendors, such as the utility company. Kettleman is preparing its statement of cash flows under the direct method and trying to figure out "Cash paid for inventory and operating expenses". The accountant pulls the following information: Revenue: $500,000 Cost of Goods Sold: $275,000 Operating expenses: $80,000 Inventory: $37,000 (beginning) and $52,000 (ending) Accounts receivable: 50,000 (beginning) and $62,000 (ending) Accounts payable: $90,000 (beginning) and $73,500 (ending) Prepaid expenses: $4,000 (beginning) and $12,000 (ending) What amount should Kettleman report for "Cash paid for inventory and operating expenses"? Numeric Response Help Save & Exit

Answer rating: 100% (QA)

To calculate the cash paid for inventory we need to know the change in inventory value from the begi... View the full answer