Squeeze Company reports the following: If cost of goods sold for the year is $220,000, the amount of cash paid to suppliers is
A)$227,000.
B)$205,000.
C)$193,000.
D)$247,000.

Question

Squeeze Company reports the following:  If cost of goods sold for the year is $220,000, the amount of cash paid to suppliers is
A)$227,000. 
B)$205,000. 
C)$193,000. 
D)$247,000.

Quizplus · Accepted Answer

The given code (11eb12bc_a632_068c_94c2_93cfec551d54_TB6276_00) is irrelevant to the question. To calculate the cash paid to suppliers, we need to add the increase in accounts payable (if any) to the cost of goods sold and subtract the decrease in accounts payable (if any) from it. As no information is given about the changes in accounts payable, we assume it to be constant. Therefore, the amount of cash paid to suppliers is equal to the cost of goods sold, which is $220,000. Thus, the correct answer is option C.

Squeeze Company Reports the Following: If Cost of Goods