St.Pierre Enterprises reported the following information in its financial statements: $\begin{array}{lrr}
\text { Amounts are as of or for the year ended } & \text { Prior Year } & \text { Current Year } \
\text { Inventory } & \$ 55,000 & \$ 80,000\
\text { Accounts Receivable } & 68,000 & 103,000 \
\text { Accounts Payable } & 34,500 & 40,000 \
\text { Sales Revenue } & 305,000 & 375,000 \
\text { Cost of Goods Sold } & 203,000 & 250,000
\end{array}$ What is the amount of cash payments made to suppliers during the current year?
A)$280,500
B)$269,500
C)$394,500
D)$230,500

Question

Quizplus · Accepted Answer

To calculate the cash payments made to suppliers during the current year, we use the formula: Cash Payments to Suppliers = Cost of Goods Sold + Ending Inventory - Beginning Inventory + Beginning Accounts Payable - Ending Accounts Payable. Plugging in the values: $250,000 + $80,000 - $55,000 + $34,500 - $40,000 = $269,500.

StPierre Enterprises Reported the Following Information in Its Financial Statements