A company recorded net purchases of $20.3 billion for 20B. In 20A, ending trade payables was $1.2 billion and in 20B, it was $1.6 billion. How much cash was paid to suppliers in 20B?
A) $19.9 billion
B) $18.7 billion
C) $21.9 billion
D) $20.7 billion

Question

Quizplus · Accepted Answer

To find the cash paid to suppliers, use the formula: Cash Paid = Net Purchases + Beginning Trade Payables - Ending Trade Payables. Here, Cash Paid = $20.3 billion + $1.2 billion - $1.6 billion = $19.9 billion.

A Company Recorded Net Purchases of $20