A company's inventory balance at 12/31/08 was $200,000 and was $188,000 at 12/31/09.Its accounts payable balance at 12/31/08 was $80,000 and was $84,000 at 12/31/09 and its cost of goods sold for 2009 was $720,000.The company's total amount of cash payments for merchandise in 2009 equals:

Question

Quizplus · Accepted Answer

Decrease in merchandise: $200,000 - $188,000 = $12,000
Decrease in Accounts Payable: $84,000 - $80,000 = $4,000
Cash paid for merchandise: $720,000 - $12,000 - $4,000 = $704,000

A Company's Inventory Balance at 12/31/08 Was $200,000 and Was