Operating Activities: Direct Method Video Lessons

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Problem: The cost of goods sold during the year was $165,000. Merchandise inventory decreased by $6,000 during the year and accounts payable decreased by $3,000 during the year. Using the direct method of reporting cash flows from operating activities, cash payments for merchandise total a. $168,000. b. $162,000. c. $156,000. d. $174,000

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The cost of goods sold during the year was $165,000. Merchandise inventory decreased by $6,000 during the year and accounts payable decreased by $3,000 during the year. Using the direct method of reporting cash flows from operating activities, cash payments for merchandise total

a. $168,000.

b. $162,000.

c. $156,000.

d. $174,000

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