Schneider Corporation reports a $ 15,000 increase in inventory and a $ 5,000 increase in accounts payable during the year. Cost of goods sold for the year was $ 150,000. The cash payments made to suppliers were
A) $ 150,000.
B) $ 160,000.
C) $ 130,000.
D) $ 145,000.

Question

Quizplus · Accepted Answer

The cash payments to suppliers can be calculated as: Cost of Goods Sold ($150,000) + Increase in Inventory ($15,000) - Increase in Accounts Payable ($5,000) = $160,000.

Schneider Corporation Reports a $ 15,000 Increase in Inventory and a