Nature Metals Company uses the direct method to prepare its statement of cash flows. Use the following information reported for the year 2018 to compute the cash paid to suppliers for operating expenses.
Operating expenses, $30,000
Accrued Liabilities, beginning balance, $3500
Accrued Liabilities, ending balance, $5600

Question

Nature Metals Company uses the direct method to prepare its statement of cash flows. Use the following information reported for the year 2018 to compute the cash paid to suppliers for operating expenses.
 Operating expenses, $30,000
Accrued Liabilities, beginning balance, $3500
Accrued Liabilities, ending balance, $5600

Quizplus · Accepted Answer

To find the cash paid for operating expenses, adjust the operating expenses by the change in accrued liabilities: $30,000 - ($5,600 - $3,500) = $27,900.

Nature Metals Company Uses the Direct Method to Prepare Its