Jump Company uses the direct method to prepare its statement of cash flows. Refer to the following information reported for 2019:
Cost of Goods Sold, $150,000
Merchandise Inventory, beginning balance, $30,000
Merchandise Inventory, ending balance, $60,000
Accounts Payable, beginning balance, $8100
Accounts Payable, ending balance, $5000
Operating expenses, $28,000
Accrued Liabilities, beginning balance, $2900
Accrued Liabilities, ending balance, $6200
Use the direct method to compute the cash paid to suppliers. (Accrued Liabilities relate to operating expenses.)

Question

Jump Company uses the direct method to prepare its statement of cash flows. Refer to the following information reported for 2019: 
Cost of Goods Sold, $150,000
Merchandise Inventory, beginning balance, $30,000
Merchandise Inventory, ending balance, $60,000
Accounts Payable, beginning balance, $8100
Accounts Payable, ending balance, $5000
Operating expenses, $28,000
Accrued Liabilities, beginning balance, $2900
Accrued Liabilities, ending balance, $6200
Use the direct method to compute the cash paid to suppliers. (Accrued Liabilities relate to operating expenses.)

Quizplus · Accepted Answer

The Answer of Jump Company uses the direct method to prepare its statement of cash flows. Refer to the following information reported for 2019: 
Cost of Goods Sold, $150,000
Merchandise Inventory, beginning balance, $30,000
Merchandise Inventory, ending balance, $60,000
Accounts Payable, beginning balance, $8100
Accounts Payable, ending balance, $5000
Operating expenses, $28,000
Accrued Liabilities, beginning balance, $2900
Accrued Liabilities, ending balance, $6200
Use the direct method to compute the cash paid to suppliers. (Accrued Liabilities relate to operating expenses.)

Jump Company Uses the Direct Method to Prepare Its Statement