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

DBB's cash paid to suppliers for 2013 can be calculated using the following formula:Cash paid to suppliers = Cost of goods sold + Increase in accounts payable - Decrease in merchandise inventoryCash paid to suppliers = $600,000 + $30,000 - $20,000 = $550,000

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