A company reported cost of goods sold of $2,400,000 for the 2019 year. During the year, inventory increased from a $138,000 beginning balance to a $210,000 ending balance, and accounts payable increased from a $72,000 beginning balance to a $84,000 ending balance.
How much is the cash paid for merchandise purchased during the year?

Question

Quizplus · Accepted Answer

$2,400,000 + ($210,000 - $138,000) + ($72,000 - $84,000) = $2,460,000

A Company Reported Cost of Goods Sold of $2,400,000 for the 2019