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The Following Information Is Available for Kent Company Year 2

Question 131

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The following information is available for Kent Company Year 2.
 Net income, Year 2 $280,000 Inventory, 1/1/ Year 2 300,000 Inventory, 12/31/ Year 2 260,000 Cost of goods sold, Year 2 1,500,000 Accounts payable, 1/1/ Year 2 180,000 Accounts payable, 12/31/ Year 2 230,000\begin{array} { l r } \text { Net income, Year 2 } & \$ 280,000 \\\text { Inventory, } 1 / 1 / \text { Year 2 } & 300,000 \\\text { Inventory, } 12 / 31 / \text { Year 2 } & 260,000 \\\text { Cost of goods sold, Year 2 } & 1,500,000 \\\text { Accounts payable, } 1 / 1 / \text { Year 2 } & 180,000 \\\text { Accounts payable, } 12 / 31 / \text { Year 2 } & 230,000\end{array} Required:
1)What amount of cash was paid for the purchase of merchandise?
2)How will the above items be shown on the statement of cash flows using the indirect method?
3)How will the amount computed in 1)be shown on the statement of cash flows using the direct method?

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