LFM Corporation reported cost of goods sold on its income statement of $15,000. The following account balances appeared on the company's comparative balance sheet for the same year: The company uses the direct method to determine the net cash provided by operating activities. The cost of goods sold, adjusted to a cash basis, on the company's statement of cash flows for the year would be:
A)$14,000
B)$16,000
C)$10,000
D)$15,000

Question

LFM Corporation reported cost of goods sold on its income statement of $15,000. The following account balances appeared on the company's comparative balance sheet for the same year:  The company uses the direct method to determine the net cash provided by operating activities. The cost of goods sold, adjusted to a cash basis, on the company's statement of cash flows for the year would be:
A)$14,000 
B)$16,000 
C)$10,000 
D)$15,000

Quizplus · Accepted Answer

The Answer is B

LFM Corporation Reported Cost of Goods Sold on Its Income