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17 April, 21:43

The cost of merchandise sold during the year was $54,000. Merchandise inventories increased by $2,000. Accounts payable increased by $3,000. Using the direct method of reporting cash flows from operating activities, cash payments for merchandise are calculateda. $47,000

b. $51,000

c. $53,000

d. $49,000

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  1. 17 April, 22:48
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    C=$53000

    Explanation:

    using the direct method of cash flow

    Cash flow from operating Activities

    opening stock Assumed = Nil

    Cost of goods sold = 54000

    Add: Stock increased by = 2000

    Total Purchases (54+2) = 56000

    Closing Paybles Increase by = (3000)

    Cash Payments = opening + Purchases-closing payables

    Cash Payments = Nil+56000-3000 = 56000
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