Use the following information about the current year's operations of a company to calculate the cash paid for merchandise.
A)$727,000.
B)$726,300.
C)$732,700.
D)$737,300.
E)$737,700.

Question

Use the following information about the current year's operations of a company to calculate the cash paid for merchandise. 
A)$727,000. 
B)$726,300. 
C)$732,700. 
D)$737,300. 
E)$737,700.

Quizplus · Accepted Answer

To calculate the cash paid for merchandise, we need to look at the change in accounts payable and inventory. From the information provided, accounts payable increased by $4,700, and inventory decreased by $4,000. Therefore, the cash paid for merchandise would be $727,000 ($731,700 - $4,000 + $4,700 = $727,000).

Use the Following Information About the Current Year's Operations of a Company