Neutral Paints Company uses the direct method for preparing its statement of cash flow.Neutral reports the following information regarding 2017:
From the income statement:
Sales Revenues,$268,000
Cost of Goods Sold,$213,000
Operating Expenses,$34,000
From the balance sheet:

What amount will be shown for payments to suppliers for operating expenses? (Accounts Payable are for purchases of merchandise inventory only,and Accrued Liabilities relate to operating expenses. )
A)$37,000
B)$34,000
C)$32,500
D)$38,500

Question

Neutral Paints Company uses the direct method for preparing its statement of cash flow.Neutral reports the following information regarding 2017:
From the income statement:
Sales Revenues,$268,000
Cost of Goods Sold,$213,000
Operating Expenses,$34,000
From the balance sheet:

What amount will be shown for payments to suppliers for operating expenses? (Accounts Payable are for purchases of merchandise inventory only,and Accrued Liabilities relate to operating expenses. )
A)$37,000 
B)$34,000 
C)$32,500 
D)$38,500

Quizplus · Accepted Answer

A)
 11ea8a42_4f72_8050_8b44_0317a1e27b73_TB5024_00

Neutral Paints Company Uses the Direct Method for Preparing Its