Power Company's income statement for 2021 is given below. If inventory balances are 5000 in 2021 and 9000 in 2020, and if accounts payables balances are 7000 in 2021 and 12000 in 2020. Which of the following is cash payments for COGS (cash inputs)? Sales 75,000 -COGS 55,000 Gross Profit 20,000 -Operating Expenses 8,000 Operating Profit 12,000 -Interest Expense 2,000 Profit before Tax 10,000 -Tax 3,000 7,000 Net Profit

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Power Company's income statement for 2021 is given below. If inventory
balances are 5000 in 2021 and 9000 in 2020, and if accounts payables
balances are 7000 in 2021 and 12000 in 2020. Which of the following is cash
payments for COGS (cash inputs)?
Sales
75,000
-COGS
55,000
Gross Profit
20,000
-Operating
Expenses
8,000
Operating Profit
12,000
-Interest Expense
2,000
Profit before Tax
10,000
- -Tax
3,000
7,000
Net Profit
Transcribed Image Text:Power Company's income statement for 2021 is given below. If inventory balances are 5000 in 2021 and 9000 in 2020, and if accounts payables balances are 7000 in 2021 and 12000 in 2020. Which of the following is cash payments for COGS (cash inputs)? Sales 75,000 -COGS 55,000 Gross Profit 20,000 -Operating Expenses 8,000 Operating Profit 12,000 -Interest Expense 2,000 Profit before Tax 10,000 - -Tax 3,000 7,000 Net Profit
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