Neutral Paints Company uses the direct method for preparing its statement of cash flow. Neutral reports the following information regarding 2017: From the income statement:
Sales Revenues, $268,000
Cost of Goods Sold, $213,000
Operating Expenses, $34,000
From the balance sheet: What amount will be shown for payments to suppliers for operating expenses? (Accounts Payable are for purchases of merchandise inventory only, and Accrued Liabilities relate to operating expenses.)
A) $37,000
B) $34,000
C) $32,500
D) $38,500

Question

Neutral Paints Company uses the direct method for preparing its statement of cash flow. Neutral reports the following information regarding 2017: From the income statement:
Sales Revenues, $268,000
Cost of Goods Sold, $213,000
Operating Expenses, $34,000
From the balance sheet:  What amount will be shown for payments to suppliers for operating expenses? (Accounts Payable are for purchases of merchandise inventory only, and Accrued Liabilities relate to operating expenses.)
A) $37,000 
B) $34,000 
C) $32,500 
D) $38,500

Quizplus · Accepted Answer

The Answer of Neutral Paints Company uses the direct method for preparing its statement of cash flow. Neutral reports the following information regarding 2017: From the income statement:
Sales Revenues, $268,000
Cost of Goods Sold, $213,000
Operating Expenses, $34,000
From the balance sheet:  What amount will be shown for payments to suppliers for operating expenses? (Accounts Payable are for purchases of merchandise inventory only, and Accrued Liabilities relate to operating expenses.)
A) $37,000 
B) $34,000 
C) $32,500 
D) $38,500

Neutral Paints Company Uses the Direct Method for Preparing Its