Answer:
Cost of merchandise sold……………………………………………………………… $240,000
Add increase in inventories……………………………………………………………… 19,200
Deduct increase in accounts payable………………………………………………… (12,000)
Cash paid for merchandise……………………………………………………………… $247,200
Showing posts with label accounts payable. Show all posts
Showing posts with label accounts payable. Show all posts
Monday, September 23, 2019
The cost of merchandise sold reported on the income statement was $240,000. The accounts payable balance increased $12,000,
The cost of merchandise sold reported on the income statement was $240,000. The accounts payable balance increased $12,000, and the inventory balance increased by $19,200 over the year. Determine the amount of cash paid for merchandise.
Answer:
Cost of merchandise sold……………………………………………………………… $240,000
Add increase in inventories……………………………………………………………… 19,200
Deduct increase in accounts payable………………………………………………… (12,000)
Cash paid for merchandise……………………………………………………………… $247,200
Answer:
Cost of merchandise sold……………………………………………………………… $240,000
Add increase in inventories……………………………………………………………… 19,200
Deduct increase in accounts payable………………………………………………… (12,000)
Cash paid for merchandise……………………………………………………………… $247,200
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