A company reported cost of goods sold of $826,800 for the year. During the year, inventory increased from a $180,000 beginning balance to a $216,000 ending balance, and accounts payable increased from a $56,400 beginning balance to a $66,000 ending balance.
How much cash was paid for merchandise purchased during the year?

Question

Quizplus · Accepted Answer

The cash paid for merchandise is calculated as: Cost of Goods Sold ($826,800) + Increase in Inventory ($36,000) - Increase in Accounts Payable ($9,600) = $853,200.

A Company Reported Cost of Goods Sold of $826,800 for the Year