Reference no: EM132607292

Rockhouse Corp. reported the following on its statement of financial position:

                            June 30, 20X5                   June 30, 20X4

Inventory                  $1,700,000                     $1,500,000

Accounts payable         $325,000                       $440,000

Salaries payable              $600,000                     $500,000

Question 1: For the year ended June 30, 20X5, Rockhouse reported cost of goods sold of $3,900,000 on the statement of comprehensive income. Using the direct method, what amount would be reported by Rockhouse under the operating activities section in the statement of cash flows for the year ended June 30, 20X5, for cash paid to suppliers?

a) $3,585,000

b) $3,685,000

c) $4,115,000

d) $4,215,000