Income Statement for the year: Sales $ 750,000 Cost of Goods Sold 530,000 Gross Profit $ 220,000
Fantastic news! We've Found the answer you've been seeking!
Question:
Income Statement for the year:
Sales $ 750,000
Cost of Goods Sold 530,000
Gross Profit $ 220,000
Operating Expenses 130,000
Net Income before Taxes $ 90,000
Taxes 15,000
Net Income $ 75,000
Account Balance Changes during the year:
Inventory increase $17,000
Accounts Receivable increase $52,000
Depreciation increase $43,000
Prepaid expenses decrease $ 1,000
Accounts Payable for inventory increase $12,000
Accrued liabilities (e.g., Wages Payable) decrease $ 9,000
Taxes Payable decrease $ 4,000
What was the amount of cash payments for operating expenses this year, using the direct method?
a. $77,000 b. $97,000 c. $79,000 d. $95,000
Expert Answer:
Posted Date:
