The following information is from Ads,Inc.'s December 31,2011 annual report: Cash paid to vendors on Ads,Inc.'s statement of cash flows equals ________.
A)$100,000
B)$110,000
C)$117,000
D)$103,000

Question

The following information is from Ads,Inc.'s December 31,2011 annual report:  Cash paid to vendors on Ads,Inc.'s statement of cash flows equals ________.
A)$100,000 
B)$110,000 
C)$117,000 
D)$103,000

Quizplus · Accepted Answer

The cash paid to vendors can be found under the operating activities section of the statement of cash flows. According to Ads, Inc.'s annual report, the net cash provided by operating activities is $235,000 and the increase in accounts payable is $118,000. To find the cash paid to vendors, we need to subtract the increase in accounts payable from the net cash provided by operating activities: $235,000 - $118,000 = $117,000. Therefore, the correct answer is C.

The Following Information Is from Ads,Inc