The Doore Knob Company's accounting records are set out below.
Beginning balance Ending balance
'000 '000
$ $
Accounts receivable 15 22
Accounts payable 10 8
Prepaid expenses 12 16
Inventory 20 23
Sales - 80
Cost of sales - 30
Expenses (other than cost of sales) - 21
Determine the amount of cash paid for purchases of inventory during the period.
A) $25 000
B) $29 000
C) $35 000
D) $33 000
Correct Answer:
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