DBB reported cost of goods sold for 2013 of $600,000; merchandise inventory decreased 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

To calculate DBB's cash paid to suppliers, we need to adjust cost of goods sold for the change in inventory and accounts payable.

Cash paid to suppliers = Cost of goods sold - decrease in inventory + decrease in accounts payable
Cash paid to suppliers = $600,000 - (-$20,000) - (-$30,000)
Cash paid to suppliers = $610,000

Therefore, the correct answer is (D) $610,000.

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