Dimas Company reported sales of $555,000 and cost of goods sold of $398,000. Dimas' Inventory account increased $21,000 and its' Accounts Payable account which relates solely to the purchase of merchandise)decreased $17,000. The cash paid to purchase inventory was:

Question

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The cash paid to purchase inventory is calculated as: Cost of Goods Sold ($398,000) + Increase in Inventory ($21,000) - Decrease in Accounts Payable ($17,000) = $436,000.

Dimas Company Reported Sales of $555,000 and Cost of Goods