Balance sheet accounts for Hollis, Inc. contained the following amounts at the ends of years 1 and 2: The company's income statement for year 2 follows: There were no sales or retirements of plant and equipment in Year 2. Cash dividends of $5,000 were paid during Year 2. The company pays no income taxes. The company uses the direct method to determine the net cash provided by operating activities on the statement of cash flows.
-Cost of goods sold adjusted to a cash basis for Year 2 would be:
A) $64,000
B) $72,000
C) $82,000
D) $90,000

Question

Balance sheet accounts for Hollis, Inc. contained the following amounts at the ends of years 1 and 2:  The company's income statement for year 2 follows:  There were no sales or retirements of plant and equipment in Year 2. Cash dividends of $5,000 were paid during Year 2. The company pays no income taxes. The company uses the direct method to determine the net cash provided by operating activities on the statement of cash flows.
-Cost of goods sold adjusted to a cash basis for Year 2 would be:
A) $64,000 
B) $72,000 
C) $82,000 
D) $90,000

Quizplus · Accepted Answer

The Answer of Balance sheet accounts for Hollis, Inc. contained the following amounts at the ends of years 1 and 2:  The company's income statement for year 2 follows:  There were no sales or retirements of plant and equipment in Year 2. Cash dividends of $5,000 were paid during Year 2. The company pays no income taxes. The company uses the direct method to determine the net cash provided by operating activities on the statement of cash flows.
-Cost of goods sold adjusted to a cash basis for Year 2 would be:
A) $64,000 
B) $72,000 
C) $82,000 
D) $90,000

Balance Sheet Accounts for Hollis, Inc