If a company's Cost of goods sold is $158,000 for the period, beginning and ending Inventory balances are $18,000 and $13,000, respectively, and the beginning and ending Accounts Payable balances are $19,000 and
$7,500, respectively, the cash paid to suppliers is:

Question

Quizplus · Accepted Answer

To calculate the cash paid to suppliers, we need to use the formula:

Cash paid to suppliers = Cost of goods sold + Beginning inventory - Ending inventory - Beginning accounts payable + Ending accounts payable

Plugging in the given values, we get:

Cash paid to suppliers = $158,000 + $18,000 - $13,000 - $19,000 + $7,500
= $151,500

Therefore, the answer is D) $151,500.

If a Company's Cost of Goods Sold Is $158,000 for the Period