The financial statements for Warren Company show the following:
Based on this information, cash paid for merchandise was:
A) $736,000
B) $719,000
C) $731,000
D) $741,000

Question

The financial statements for Warren Company show the following:
 Based on this information, cash paid for merchandise was:
A) $736,000 
B) $719,000 
C) $731,000 
D) $741,000

Quizplus · Accepted Answer

To find cash paid for merchandise, start with cost of goods sold ($719,000) and add the increase in inventory ($12,000). This gives a total of $731,000. Therefore, the correct answer is choice C.

The Financial Statements for Warren Company Show the Following