The cost of goods sold during the year was $50 000. Inventories were $11 500 and $9 500 at the beginning and end of the year, respectively. Accounts payable were $5 000 and $4 000 at the beginning and end of the year, respectively. Using the direct method of reporting cash flows from operating activities, cash payments to accounts payable would total:

Question

Quizplus · Accepted Answer

Cash payments to accounts payable = Beginning accounts payable + Purchases - Ending accounts payable= $5,000 + $50,000 - $4,000= $49,000

The Cost of Goods Sold During the Year Was $50