For a merchandising company, the largest operating cash outﬂow would result from which of the following?
A) payments to suppliers from whom we have purchased inventory on credit
B) payment of wages and beneﬁts to employees
C) payment of taxes to the various government entities
D) payment of interest on notes payable

Question

Quizplus · Accepted Answer

Payments to suppliers for inventory purchases typically represent the largest operating cash outflow for a merchandising company, as acquiring inventory to sell is a core part of their business operations.

For a Merchandising Company, the Largest Operating Cash Outﬂow Would