Question: Davis Company uses the direct method to prepare its statement of cash flows. Refer to the following information reported for the year 2014: Operating expenses,

Davis Company uses the direct method to prepare its statement of cash flows. Refer to the following information reported for the year 2014:

Operating expenses, $26,000

Accrued Liabilities, beginning balance, $3,000

Accrued Liabilities, ending balance, $5,000

What amount was paid to suppliers for operating expenses on a cash basis?

A.$29,000

B.$24,000

C.$31,000

D.$28,000

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