Reference no: EM132684541

Rockhouse Corp. reported the following on its statement of financial position:

                  June 30, 20X5          June 30, 20X4

Inventory   $1,700,000               $1,500,000

Accounts payable $325,000         $440,000

Salaries payable $600,000                 $500,000

Problem 1: For the year ended June 30, 20X5, Rockhouse reported cost of goods sold of $3,900,000 on the statement of comprehensive income. Using the direct method, what amount would be reported by Rockhouse under the operating activities section in the statement of cash flows for the year ended June 30, 20X5, for cash paid to suppliers?

a) $3,585,000

b) $3,685,000

c) $4,115,000

d) $4,215,000