Mei Company uses the direct method to prepare its statement of cash flows. Refer to the following information reported for the year 2014: Cost of Goods Sold, $155,000
Inventory, beginning balance, $26,000
Inventory, ending balance, $63,000
Accounts Payable, beginning balance, $8,100
Accounts Payable, ending balance, $5,100
Operating expenses, $27,000
Accrued Liabilities, beginning balance, $2,500
Accrued Liabilities, ending balance, $6,000
In the operating activities section of the statement of cash flows, what amount will be shown for payments to suppliers? Assume Accrued Liabilities relate to Operating Expenses.
A)$171,500
B)$160,000
C)$195,000
D)$218,500

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The Answer of Mei Company uses the direct method to prepare its statement of cash flows. Refer to the following information reported for the year 2014: Cost of Goods Sold, $155,000
Inventory, beginning balance, $26,000
Inventory, ending balance, $63,000
Accounts Payable, beginning balance, $8,100
Accounts Payable, ending balance, $5,100
Operating expenses, $27,000
Accrued Liabilities, beginning balance, $2,500
Accrued Liabilities, ending balance, $6,000
In the operating activities section of the statement of cash flows, what amount will be shown for payments to suppliers? Assume Accrued Liabilities relate to Operating Expenses.
A)$171,500
B)$160,000
C)$195,000
D)$218,500

Mei Company Uses the Direct Method to Prepare Its Statement