The Simplex Company reported cost of goods sold on its income statement of$10,000. The following account balances appeared on the company”s comparative balance sheet for the same year:
|
|
Ending |
Beginning |
|
Inventory |
$22,000 |
$20,000 |
|
Accounts Payable |
$14,000 |
$11,000 |
The company uses the indirect method to determine the net cash provided by operating activities. The cost of goods sold, adjusted to a cash basis, on the company”s statement of cash flows for the year would be:
A) $11,000
B) $10,000
C) $9,000
D) $5,000