Jerome Company reported cost of goods sold of $700,000,a decrease in inventory of $60,000,and an increase in accounts payable of $30,000.How much cash was paid to suppliers?

Question

Quizplus · Accepted Answer

The cash paid to suppliers is calculated using the following formula:
Cash Paid to Suppliers = Cost of Goods Sold - Decrease in Inventory + Increase in Accounts Payable
= $700,000 - $60,000 + $30,000
= $670,000
Therefore, the correct answer is B) $610,000, which is the closest option to the calculated amount.

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