Operating Activities: Direct Method Video Lessons

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Problem: A company reports its cost of goods sold as $15.0 billion in 2009. It has $2.9 billion in inventory and reports accounts payable at $1.2 billion at the end of 2009. At the end of 2008 ending inventory was reported at $3.1 billion and accounts payable was $1.4 billion. How much cash was paid to suppliers for 2009? A. $14.8 billion B. $15.0 billion C. $15.2 billion D. $15.7 billion

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Problem Details

A company reports its cost of goods sold as $15.0 billion in 2009. It has $2.9 billion in inventory and reports accounts payable at $1.2 billion at the end of 2009. At the end of 2008 ending inventory was reported at $3.1 billion and accounts payable was $1.4 billion. How much cash was paid to suppliers for 2009?

A. $14.8 billion

B. $15.0 billion

C. $15.2 billion

D. $15.7 billion

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