Steve Company reported cost of goods sold of $910,000, an increase in inventory of $100,000, and a decrease in accounts payable of $40,000._____ was paid to Steve Company's suppliers.

Question

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To calculate the amount paid to suppliers, start with the cost of goods sold ($910,000), add the increase in inventory ($100,000) because it represents additional purchases not yet sold, and subtract the decrease in accounts payable ($40,000) because it indicates payments made that reduce the liability. This results in $910,000 + $100,000 - $40,000 = $970,000. However, there seems to be a mistake in my calculation as the correct process leads to a result not listed in the options. The correct approach should indeed yield one of the provided options, but based on the given explanation, none of the options accurately reflect the corrected calculation. The intended correct answer appears to be a mistake in calculation. Re-evaluating with the correct formula: Cost of Goods Sold + Increase in Inventory - Decrease in Accounts Payable = Payments to Suppliers, but the provided options and the calculation do not align correctly with standard accounting principles.

Steve Company Reported Cost of Goods Sold of $910,000, an Increase