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

Question

Quizplus · Accepted Answer

The formula to calculate cash paid to suppliers= cost of goods sold + increase in inventory - increase in accounts payable
Cash paid to suppliers = $600,000 + $20,000 - $30,000 = $590,000

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