Alkine Company's comparative balance sheet appears below: Alkine reported the following net income for the year: Dividends were declared and paid during the year. A gain of $8,000 was recorded on the sale of the long-term investments. The company did not purchase any long-term investments or dispose of any property, plant, and equipment during the year. It also did not issue any bonds payable or repurchase any of its own common stock.
-Under the direct method,the cost of goods sold adjusted to a cash basis would be:
A)$152,000
B)$160,000
C)$163,000
D)$155,000

Question

Alkine Company's comparative balance sheet appears below:  Alkine reported the following net income for the year:  Dividends were declared and paid during the year. A gain of $8,000 was recorded on the sale of the long-term investments. The company did not purchase any long-term investments or dispose of any property, plant, and equipment during the year. It also did not issue any bonds payable or repurchase any of its own common stock.
-Under the direct method,the cost of goods sold adjusted to a cash basis would be:
A)$152,000 
B)$160,000 
C)$163,000 
D)$155,000

Quizplus · Accepted Answer

The Answer of Alkine Company's comparative balance sheet appears below:  Alkine reported the following net income for the year:  Dividends were declared and paid during the year. A gain of $8,000 was recorded on the sale of the long-term investments. The company did not purchase any long-term investments or dispose of any property, plant, and equipment during the year. It also did not issue any bonds payable or repurchase any of its own common stock.
-Under the direct method,the cost of goods sold adjusted to a cash basis would be:
A)$152,000 
B)$160,000 
C)$163,000 
D)$155,000

Alkine Company's Comparative Balance Sheet Appears Below: Alkine Reported