Parmesan Company uses the direct method for its statement of cash flow. It reports the following information regarding the year 2014: From the income statement:
Sales Revenues, $265,000
Cost of Goods Sold, $210,000
Operating expenses, $31,000
From the balance sheet: On the statement of cash flows, what amount will be shown for payments to suppliers for operating expenses? (Assume that Accounts Payable are for purchases of inventory only and Accrued Liabilities relate to Operating Expenses.)
A)$33,500
B)$28,500
C)$29,500
D)$35,000

Question

Parmesan Company uses the direct method for its statement of cash flow. It reports the following information regarding the year 2014: From the income statement:
Sales Revenues, $265,000
Cost of Goods Sold, $210,000
Operating expenses, $31,000
From the balance sheet:  On the statement of cash flows, what amount will be shown for payments to suppliers for operating expenses? (Assume that Accounts Payable are for purchases of inventory only and Accrued Liabilities relate to Operating Expenses.)
A)$33,500 
B)$28,500 
C)$29,500 
D)$35,000

Quizplus · Accepted Answer

The Answer of Parmesan Company uses the direct method for its statement of cash flow. It reports the following information regarding the year 2014: From the income statement:
Sales Revenues, $265,000
Cost of Goods Sold, $210,000
Operating expenses, $31,000
From the balance sheet:  On the statement of cash flows, what amount will be shown for payments to suppliers for operating expenses? (Assume that Accounts Payable are for purchases of inventory only and Accrued Liabilities relate to Operating Expenses.)
A)$33,500 
B)$28,500 
C)$29,500 
D)$35,000

Parmesan Company Uses the Direct Method for Its Statement of Cash