Mei Tobacco 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
Correct Answer:
Verified
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