DBB reported cost of goods sold for 2013 of $600,000; merchandise inventory increased by $20,000 during the year and accounts payable decreased by $30,000 during the year. What would be DBB's cash paid to suppliers for 2013?

Question

Quizplus · Accepted Answer

The cash paid to suppliers is calculated by adjusting the cost of goods sold for changes in inventory and accounts payable. Starting with COGS of $600,000, add the increase in inventory ($20,000) and the decrease in accounts payable ($30,000): $600,000 + $20,000 + $30,000 = $650,000.

DBB Reported Cost of Goods Sold for 2013 of $600,000;