如题

问题如下：

Question

Cash Flow Statement for Year Ended 31 December ($ millions)

Income Statement for Year Ended 31 December ($ millions)

If the company uses the direct method to prepare its cash flow statement, the cash paid to suppliers (in $ millions) will be closest to:

选项：

A.12,334.00 B.13,328.00 C.12,536.00

解释：

Solution

1. Incorrect. This answer reverses the direction for A/P and inventory

   

2. Correct. The cash paid to suppliers is calculated as follows:

   

3. Incorrect. This answer ignores inventory

   

   Analyzing Statements of Cash Flows I

   • demonstrate the conversion of cash flows from the indirect to direct method