Utley Company had a cost of purchases of $250,000. The comparative balance sheet analysis revealed a $10,000 decrease in inventory and a $20,000 increase in accounts payable. What were Utley's cash payments to suppliers?
A) $230,000
B) $220,000
C) $260,000
D) $280,000

Question

Quizplus · Accepted Answer

The formula for calculating cash payments to suppliers is:Cost of purchases + Decrease in inventory - Increase in accounts payable = Cash payments to suppliers$250,000 + (-$10,000) - $20,000 = $230,000

Utley Company Had a Cost of Purchases of $250,000