The income statement for Jones Company showed cost of goods sold of $80000 and operating expenses of $65000. The comparative balance sheets for the year show that inventory decreased $5000 prepaid expenses increased $7000 accounts payable increased $3000 and accrued expenses payable decreased $5000.
Instructions
Compute (a) cash payments to suppliers and (b) cash payments for operating expenses using the direct method.

Question

Quizplus · Accepted Answer

The Answer of The income statement for Jones Company showed cost of goods sold of $80000 and operating expenses of $65000. The comparative balance sheets for the year show that inventory decreased $5000 prepaid expenses increased $7000 accounts payable increased $3000 and accrued expenses payable decreased $5000.
Instructions
Compute (a) cash payments to suppliers and (b) cash payments for operating expenses using the direct method.

The Income Statement for Jones Company Showed Cost of Goods