What amount should PAOLO include as net cash provided

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Reference no: EM133133331

Questions -

Q1. PAOLO Corporation had the following account balances for 2020:

 

31-Dec

1-Jan

Accounts Payable 

67,200

58,200

Prepaid Rent Expense 

24,600

37,200

Accounts Receivable (net) 

84,000

66,600

PAOLO's 2020 profit is 450,000. What amount should PAOLO include as net cash provided by operating activities in its 2002 statement of cash flows?

a. 436,200

b. 445,200

c. 453,600

d. 454,200

Q2. PAOLO Company's 2020 income statement reported cost of goods sold as 135,000. Additional information is as follows:


31-Dec-20

31-Dec-19

Inventory

30,000

22,500

Accounts Payable

13,000

19,500

If PAOLO uses the direct method, what amount should PAOLO report as cash paid to suppliers in its 2020 statement of cash flows?

a. 121,000

b. 134,000

c. 136,000

d. 149,000

Reference no: EM133133331

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