The direct method would show cash payments for merchandise


Derive cost of goods sold from data in the statement of cash flows. The section showing cash flow from operations, using the indirect method, for Taylor Stores reported an increase in inventories of $5.7 million during the year. It reported also that the balance in accounts payable for inventories increased by $5.9 million. The direct method would show cash payments for merchandise inventory purchased of $646.9 million. Compute Taylor's cost of goods sold for the year

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Accounting Basics: The direct method would show cash payments for merchandise
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