The following information is from ABC,Inc.'s December 31,2011 annual report: Cash paid to vendors on ABC,Inc.'s statement of cash flows equals ________.
A)$100,000
B)$110,000
C)$104,000
D)$96,000

Question

The following information is from ABC,Inc.'s December 31,2011 annual report:  Cash paid to vendors on ABC,Inc.'s statement of cash flows equals ________.
A)$100,000 
B)$110,000 
C)$104,000 
D)$96,000

Quizplus · Accepted Answer

The cash paid to vendors can be found under the operating activities section of the statement of cash flows. ABC, Inc.'s statement shows net cash provided by operating activities to be $70,000. This includes an increase in accounts payable of $34,000. Therefore, the cash paid to vendors would be the difference between the increase in accounts payable and the cost of goods sold, which is $104,000 ($34,000 + $70,000).

The Following Information Is from ABC,Inc