A company had cost of goods sold of $150,000 during a given period.Compute cash paid for merchandise during this period given the following data:
$\begin{array}{|l|r|r|}
\hline &\begin{array}{c}
\text { Beginning } \
\text { Balance }
\end{array} & \begin{array}{c}
\text { Ending } \
\text { Balance }
\end{array} \
\hline \text { Accounts payable } & \$ 20,000 & \$ 17,500 \
\hline \text { Merchandise inventory } & 35,000 & 42,000 \
\hline
\end{array}$

Question

Quizplus · Accepted Answer

The cash paid for merchandise is calculated as: Cost of Goods Sold + Increase in Inventory - Decrease in Accounts Payable = $150,000 + ($42,000 - $35,000) - ($20,000 - $17,500) = $159,500.

A Company Had Cost of Goods Sold of $150,000 During