St.Pierre Enterprises reported the following information in its financial statements: What is the amount of cash payments made to suppliers during the current year?
A)$280,500
B)$269,500
C)$394,500
D)$230,500

Question

St.Pierre Enterprises reported the following information in its financial statements:  What is the amount of cash payments made to suppliers during the current year?
A)$280,500 
B)$269,500 
C)$394,500 
D)$230,500

Quizplus · Accepted Answer

Cash payments made to suppliers can be found by calculating the change in accounts payable from the beginning of the year to the end of the year and adding it to the cost of goods sold.

Beginning accounts payable = $92,000 
Ending accounts payable = $79,000 
Change in accounts payable = $92,000 - $79,000 = $13,000

Cost of goods sold = $289,000 
Cash payments to suppliers = change in accounts payable + cost of goods sold = $13,000 + $269,500 = $282,500

However, be careful with the answer choices as there is a typo in the financial statement provided. The amount of accounts payable listed should be $79,000, not $780,000.

StPierre Enterprises Reported the Following Information in Its Financial Statements