Dear Sir,
Grateful if you could please help me to solve the following MCQ.
Thank you.
In the contexT of the preparation of a statement of cash flows using the direct method, the following information is relevant.
Revenue $560,000, markup percentage 33.33%, closing inventory $80,000 (an increase of 100% compared with the opening inventory), payables brought forward $79,000 payables carried forward $160,000, receivables brought forward $62,000, receivables carried forward$59,500, bad debts written off during the year $3,500, allowance for receivables brought forward $8,620, allowance for receivables carried forward $15,200.
How much cash was paid to the suppliers/payables in the year?
A $379,000
B $541,000
C $569,000
D $407,000
Ask the Tutor ACCA FR
Mock Exam F7-
Where's the question from - it's not one of mine!
The answer is choice "A" and there's an exercise very similar in the course notes at the end of the chapter on cash flows.
Did you work through that exercise?
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