Austin Company reported cost of goods sold of $700,000,a decrease in inventory of $60,000,and an increase in accounts payable of $35,000.How much cash was paid to suppliers?

Question

Quizplus · Accepted Answer

The cash paid to suppliers can be calculated using the formula: Cost of goods sold - Decrease in inventory + Increase in accounts payable.

Cash paid to suppliers = $700,000 - $60,000 + $35,000 = $675,000.

Therefore, the best choice is B) $675,000.

Austin Company Reported Cost of Goods Sold of $700,000,a Decrease