Van Aalst Company's comparative balance sheet and income statement for last year appear below: The company declared and paid $77,000 in cash dividends during the year. It did not sell or retire any property, plant, and equipment during the year. The company uses the direct method to determine the net cash provided by operating activities.
-On the statement of cash flows,the cost of goods sold adjusted to a cash basis would be:
A)$350,000
B)$383,000
C)$317,000
D)$334,000

Question

Van Aalst Company's comparative balance sheet and income statement for last year appear below:   The company declared and paid $77,000 in cash dividends during the year. It did not sell or retire any property, plant, and equipment during the year. The company uses the direct method to determine the net cash provided by operating activities.
-On the statement of cash flows,the cost of goods sold adjusted to a cash basis would be:
A)$350,000 
B)$383,000 
C)$317,000 
D)$334,000

Quizplus · Accepted Answer

The cost of goods sold adjusted to a cash basis would be $317,000, as it reflects the actual cash paid for inventory, considering changes in inventory and accounts payable.

Van Aalst Company's Comparative Balance Sheet and Income Statement for Last