Question

Nature Metals Company uses the direct method to prepare its statement of cash flows. Use the following information reported for the year 2018 to compute the cash paid to suppliers for operating expenses.
Operating expenses, $26,000
Accrued Liabilities, beginning balance, $3,000
Accrued Liabilities, ending balance, $5,000

Answer 1

Answer:

$24,000

Explanation:

Accrued Liabilities-Beginning Balance                              $3,000

Liabilities accrued for operating expenses for the year  $26,000

Less: Accrue Liabilities  -ending balance                           ($5,000)

Cash Paid to suppliers                                                          $24,000

The Cash paid to suppliers will be shown in operating activities section of direct method of cash flow statement