Northwest Builders, Inc. reported Cost of Goods Sold for the current year of $340,000. During the same period, the Inventory account decreased $15,000 and the Accounts Payable account increased $24,000. The amount of cash paid to suppliers for inventory is:

Question

Quizplus · Accepted Answer

Cost of Goods Sold = Beginning Inventory + Purchases - Ending Inventory$340,000 = Beginning Inventory + Purchases - ($15,000)Purchases = $340,000 + $15,000 = $355,000Cash paid to suppliers = Purchases - Increase in Accounts PayableCash paid to suppliers = $355,000 - $24,000 = $331,000