Stone Cold Company reported cost of goods sold of $870,000, an increase in inventory of $100,000, and a decrease in accounts payable of $40,000. was paid to Stone Cold Company's suppliers.

Question

Quizplus · Accepted Answer

The cash paid to suppliers is calculated as: Cost of Goods Sold ($870,000) + Increase in Inventory ($100,000) - Decrease in Accounts Payable ($40,000) = $1,010,000.

Stone Cold Company Reported Cost of Goods Sold of $870,000