Parmesan Company uses the direct method for its statement of cash flow. It reports the following information regarding the year 2013:

From the income statement:
Revenues: $240,000
Cost of goods sold: $190,000
Operating expenses: $25,000

From the balance sheet: Beginning balance Ending balance
Accounts receivable: $12,000 $15,000
Inventory: $22,000 $18,000
Accounts payable: $7,000 $12,000
Accrued liabilities: $3,000 $1,200

On the statement of cash flows, what amount will be shown for payments to suppliers for operating expenses? (Please assume that accounts payable are for purchases of inventory only.)

$18,600

$26,800

$23,200

$30,000

Answer rating: 100% (QA)

Solution Option B is correct ie 26800 Payments to suppliers for operati... View the full answer