Williams Corporation reported Cost of Goods Sold of $910,000 for December 31, 2019. Accounts payable on the balance sheet were $65,000 for December 31, 2018 and $54,000 for December 31, 2019. Merchandise Inventory was $81,000 for December 31, 2018 and $99,000 for December 31, 2019. Cash paid for merchandise during 2019 was ________.

Question

Quizplus · Accepted Answer

To find cash paid for merchandise, adjust COGS for changes in inventory and accounts payable: $910,000 + ($99,000 - $81,000) - ($54,000 - $65,000) = $939,000.

Williams Corporation Reported Cost of Goods Sold of $910,000 for December