7. Ogden Company uses its accounts payable account only for
inventory purchases. The following account balances were reported
on its financial statements:
Accounts
December 31, 2018
December 31, 2017
Merchandise inventory
$70,000
$66,000
Accounts payable
68,000
65,000
Cost
of goods sold
889,000
856,000
How much cash did Ogden Company pay to suppliers during
2018?
a. $887,000
b. $890,000
c. $896,000
d. $34,000
8. Kingston Jerk Factory reported the following results for
2017:
Category
December 31
January 1
Property,
plant, and equipment
$420,000
$405,000
Accumulated
depreciation
(189,000)
(180,000)
Net
property, plant, and equipment
$231,000
$225,000
During 2017, the company sold equipment that had an original
cost of $39,000 and accumulated depreciation of $31,000 for
$13,000. New equipment was purchased for cash during the year. How
much gain/(loss) will Kingston add or subtract from net income when
preparing the operating activities section of the statement of cash
flows using the indirect method for 2017?
a. Subtract $5,000
b. Add $2,000
c. Subtract $26,000
d. There is not enough information provided to answer this
question