Use the following information about the current year's operations of a company to calculate the cash paid for merchandise. $\begin{array} { l }
\text {Cost of goods sold. } &\$735,000\
\text {Merchandise inventory, January 1. } &84,700\
\text {Merchandise inventory, December 31 } &82,400\
\text {Accounts payable, January 1. } &54,500\
\text {Accounts payable, December 31. } &60,200\
\end{array}$

A)$727,000.
B)$726,300.
C)$732,700.
D)$737,700.
E)$737,300.

Question

Use the following information about the current year's operations of a company to calculate the cash paid for merchandise. $\begin{array} { l  }
 \text {Cost of goods sold. } &\$735,000\
 \text {Merchandise inventory, January 1. } &84,700\
 \text {Merchandise inventory, December 31 } &82,400\
 \text {Accounts payable, January 1. } &54,500\
 \text {Accounts payable, December 31. } &60,200\
\end{array}$

A)$727,000.
B)$726,300.
C)$732,700.
D)$737,700.
E)$737,300.

Quizplus · Accepted Answer

The cash paid for merchandise is calculated as follows:Cost of goods sold + Beginning merchandise inventory - Ending merchandise inventory = Cash paid for merchandise$735,000 + $84,700 - $82,400 = $737,300

Use the Following Information About the Current Year's Operations of a Company