Christine Company had an increase in inventory of $55,000. The cost of goods sold was $95,000. There was a $6,000 decrease in accounts payable from the prior period. What were Thomas' cash payments to suppliers?
A) $156,000
B) $61,000
C) $144,000
D) $101,000

Question

Quizplus · Accepted Answer

To find cash payments to suppliers, use the formula: Cash Payments = COGS + Increase in Inventory - Decrease in Accounts Payable. So, $95,000 + $55,000 - (-$6,000) = $156,000.

Christine Company Had an Increase in Inventory of $55,000