Bradford Company reports a $48,000 increase in inventory and a $12,000 increase in accounts payable during the year.Cost of goods sold for the year was $285,000.Using the direct method of reporting cash flows from operating activities, cash payments made to suppliers were
A)$285,000.
B)$321,000.
C)$249,000.
D)$237,000.

Question

Quizplus · Accepted Answer

The cash payments to suppliers are calculated as: Cost of Goods Sold ($285,000) + Increase in Inventory ($48,000) - Increase in Accounts Payable ($12,000) = $321,000.

Bradford Company Reports a $48,000 Increase in Inventory and a $12,000