Fertilizer Incorporated reports an increase in Accounts Payable of $9,200 and an increase in inventory of $45,000 for the current year.Accounts Payable relates solely to the purchase of merchandise.Sales on account were $532,100 and cost of goods sold was $358,000.The total purchases of merchandise for the period were:

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The increase in inventory ($45,000) plus the cost of goods sold ($358,000) gives the total purchases ($403,000) when considering the increase in accounts payable ($9,200) which is already included in the purchases.

Fertilizer Incorporated Reports an Increase in Accounts Payable of $9,200