Question: Avatar Company uses the direct method to prepare its statement of cash flows. Please refer to the following information reported for the year 2014: Cost

Avatar Company uses the direct method to prepare its statement of cash flows. Please refer to the following information reported for the year 2014: Cost of goods sold $110,000 Inventory beginning balance: $25,000 Inventory ending balance: $53,000 Accounts payable beginning balance: $6,000 Accounts payable ending balance: $4,000 What amount was paid to suppliers for inventory purchases on a cash basis?

$140,000
$80,000
$136,000
$82,000

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!