Question 3 Level Up reported the following information for 2016 and 2017: Accounts payable, 31...
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Accounting
Question 3
Level Up reported the following information for 2016 and 2017:
Accounts payable, 31 December 2016 $50 000
Accounts payable, 31 December 2017 $80 000
Inventory, 31 December 2016 $60 000
Inventory, 31 December 2017 $150 000
Cost of goods sold2017 $1 000 000
Assume that all merchandise purchases are on account. How much cash was paid to suppliers for inventory purchases during 2017?
$1 085 000
$1 060 000
$1 070 000
$1 115 000
Question 4:
Which of the following statements is false regarding how the cash flow effects of the changes in the equipment and accumulated depreciation accounts would be reported on a statement of cash flows if the indirect method is used to prepare the operating activities section?
The cash paid to purchase equipment would be reported as a cash outflow in the investing activities section
Cash proceeds from the sale of the equipment would be reported as a cash inflow in the investing activities section
Depreciation expense would be added to total comprehensive income in the operating activities section
A loss on the sale of the equipment would be subtracted from total comprehensive income in the operating activities section
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