Cost of goods sold + an increase in inventory + an increase in accounts payable = cash paid to suppliers during a period.

Question

Quizplus · Accepted Answer

Cost of goods sold + an increase in inventory - an increase in accounts payable = cash paid to suppliers during a period. The original formula incorrectly adds the increase in accounts payable, which should be subtracted to reflect the cash not yet paid out for the increased payables.

Cost of Goods Sold + an Increase in Inventory