Rocket, Corporation reports a $17,000 increase in Inventory and a $30,000 increase in Accounts Payable for the year. If the cost of purchases totaled $400,000 for the year, the cash paid to Rocket's suppliers is:
A) $447,000.
B) $430,000.
C) $370,000.
D) $353,000.

Question

Quizplus · Accepted Answer

The cash paid to suppliers is calculated as: Cost of Purchases ($400,000) - Increase in Accounts Payable ($30,000) - Increase in Inventory ($17,000) = $370,000.

Rocket, Corporation Reports a $17,000 Increase in Inventory and a $30,000