Question

reported a cost of goods sold of $87,000. Inventories increased by $42,000 during the year, and accounts payable increased by $30,000. The company uses the direct method to determine the net cash provided by (used in) operating activities on the statement of cash flows. The cost of goods sold adjusted to a cash basis would be________-

Answer 1

Cost of goods sold adjusted to a cash basis = $99,000

Explanation:

Cost of goods sold adjusted to a cash basis = $87,000+$42,000-$30,000

Cost of goods sold adjusted to a cash basis = $99,000