on its statement of cash flows what amount should narley dude show for its cost of g 641401
Narley Dude Corporation had net sales of $720,000 and cost of goods sold of $385,000 for the just completed year. Shown below are the beginning and ending balances for the year of various Narley Dude accounts:
|
Ending |
Beginning |
Cash.. |
$34,000 |
$20,000 |
Accounts receivable |
$49,000 |
$19,000 |
Inventory |
$67,000 |
$44,000 |
Accounts payable |
$15,000 |
$21,000 |
Narley Dude prepares its statement of cash flows using the direct method.
1 On its statement of cash flows, what amount should Narley Dude show for its net sales adjusted to a cash basis (i.e., cash received from sales)?
A) $690,000
B) $704,000
C) $750,000
D) $755,000
2 On its statement of cash flows, what amount should Narley Dude show for its cost of goods sold adjusted to a cash basis (i.e., cash paid to suppliers)?
A) $356,000
B) $368,000
C) $402,000
D) $414,000