Last year Madson Company reported a cost of goods sold of $800,000 on its income statement. The following additional data were taken from the company's comparative balance sheet for the year:
The company uses the direct method to determine the net cash provided by operating activities on the statement of cash flows. The cost of goods sold adjusted to a cash basis would be:
A) $830,000
B) $810,000
C) $770,000
D) $790,000

Question

Last year Madson Company reported a cost of goods sold of $800,000 on its income statement. The following additional data were taken from the company's comparative balance sheet for the year: 
The company uses the direct method to determine the net cash provided by operating activities on the statement of cash flows. The cost of goods sold adjusted to a cash basis would be:
A) $830,000 
B) $810,000 
C) $770,000 
D) $790,000

Quizplus · Accepted Answer

The Answer of Last year Madson Company reported a cost of goods sold of $800,000 on its income statement. The following additional data were taken from the company's comparative balance sheet for the year: 
The company uses the direct method to determine the net cash provided by operating activities on the statement of cash flows. The cost of goods sold adjusted to a cash basis would be:
A) $830,000 
B) $810,000 
C) $770,000 
D) $790,000

Last Year Madson Company Reported a Cost of Goods Sold