Questions are based on the data shown below related to the statement of cash flows for Litwin, Inc.:
Additional Information:
a. Accounts receivable and accounts payable relate to merchandise held for sale in the normal course of business. The allowance for bad debts was the same at the end of 2008 and 2007, and no receivables were charged against the allowance. Accounts
payable are recorded net of any discount and are always paid within the discount period.
b. The proceeds from the note payable were used to finance the acquisition of property, plant, and equipment. Capital stock was sold to provide additional working capital.
-What amount of cash was paid on accounts payable to suppliers during 2008?
A) $4,605,000
B) $4,425,000
C) $4,095,000
D) $3,735,000

Question

Questions are based on the data shown below related to the statement of cash flows for Litwin, Inc.:
   Additional Information:
a. Accounts receivable and accounts payable relate to merchandise held for sale in the normal course of business. The allowance for bad debts was the same at the end of 2008 and 2007, and no receivables were charged against the allowance. Accounts
payable are recorded net of any discount and are always paid within the discount period.
b. The proceeds from the note payable were used to finance the acquisition of property, plant, and equipment. Capital stock was sold to provide additional working capital.
-What amount of cash was paid on accounts payable to suppliers during 2008?
A) $4,605,000 
B) $4,425,000 
C) $4,095,000 
D) $3,735,000

Quizplus · Accepted Answer

$1,095,000 + ($3,915,000 + $1,950,000 - $1,260,000) - $1,275,000 = $4,425,000.

Questions Are Based on the Data Shown Below Related to the Statement