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Determine the Amount of Cash Paid to Suppliers for Each

Question 158

Essay

Determine the amount of cash paid to suppliers for each of the four independent situations below.  Situation  Cost d  goods  sold  Inventory  incr.  (decr.)  Accounts  payable  incr.  (decr.)  Cash paid  to suppliers 1$300,000$6,000$0$3300,00007,000$400,0006,0007,000$4400,000(6,000)(7,000)$\begin{array} { | l | l | l | l | l | } \hline \text { Situation } & \begin{array} { c } \text { Cost d } \\\text { goods } \\\text { sold }\end{array} & \begin{array} { c } \text { Inventory } \\\text { incr. } \\\text { (decr.) }\end{array} & \begin{array} { c } \text { Accounts } \\\text { payable } \\\text { incr. } \\\text { (decr.) }\end{array} & \begin{array} { l } \text { Cash paid } \\\text { to suppliers }\end{array} \\\hline 1 & \$ 300,000 & \$ 6,000 & \$ 0 & \$ \\\hline 3 & 300,000 & 0 & 7,000 & \$ \\\hline & 400,000 & 6,000 & 7,000 & \$ \\\hline 4 & 400,000 & ( 6,000 ) & ( 7,000 ) & \$ \\\hline\end{array}

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1) $300,000 + $6,000 = $306,00...

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