Greene Electric Company Uses the Direct Method to Prepare Its

True/False

Greene Electric Company uses the direct method to prepare its statement of cash flows.Greene has reported cost of goods sold of $85,000 on its income statement for 2018.If the balance in Accounts Payable,for merchandise inventory suppliers only,has decreased by $8,000 during the year,then $8,000 needs to be subtracted from $85,000 to calculate payments to suppliers for merchandise inventory purchases.