Davis Company Uses the Direct Method to Prepare Its Statement

Multiple Choice

Davis Company uses the direct method to prepare its statement of cash flows. Refer to the following information reported for the year 2014: Operating expenses, $26,000
Accrued Liabilities, beginning balance, $3,000
Accrued Liabilities, ending balance, $5,000
What amount was paid to suppliers for operating expenses on a cash basis?

A) $29,000
B) $28,000
C) $24,000
D) $31,000