Stapp Corp. had an increase in inventory of $40,000. The cost of goods sold was $90,000. There was a $5,000 decrease in accounts payable from the prior period. What were Stapp's cash payments to suppliers?
A) $135,000
B) $85,000
C) $125,000
D) $95,000

Question

Quizplus · Accepted Answer

Stapp's cash payments to suppliers can be calculated by adding the increase in inventory and the decrease in accounts payable to the cost of goods sold: $90,000 (COGS) + $40,000 (increase in inventory) + $5,000 (decrease in accounts payable) = $135,000.