$54,000 is owed to suppliers for inventory purchases at the beginning of the year and $44,000 is owed at the end of the year.If annual credit purchases of inventory are $160,000,the cash paid to suppliers for the year is:

Question

Quizplus · Accepted Answer

The cash paid to suppliers can be calculated using the formula: Cash Paid = Opening Balance + Purchases - Closing Balance. So, it's $54,000 + $160,000 - $44,000 = $170,000.

$54,000 Is Owed to Suppliers for Inventory Purchases at the Beginning