A company reports its cost of goods sold as $20.0 billion in 20B.It has $1.8 billion in inventory and reports trade payable sat $1.6 billion in 20B.In 20A,ending inventory was reported at $1.2 billion and trade payables was $1.1 billion.How much cash was paid to suppliers for 20B?

Question

Quizplus · Accepted Answer

To calculate the cash paid to suppliers in 20B, we need to use the formula:
Cash Paid to Suppliers = Cost of Goods Sold + Beginning Inventory - Ending Inventory - Increase in Trade Payables

Cost of goods sold = $20.0 billion
Beginning inventory = $1.2 billion (from 20A)
Ending inventory = $1.8 billion (from 20B)
Increase in trade payables = $1.6 billion - $1.1 billion = $0.5 billion

Plugging in the values, we get:
Cash Paid to Suppliers = $20.0 billion + $1.2 billion - $1.8 billion - $0.5 billion = $19.9 billion

Therefore, the best choice is C, $20.1 billion.

A Company Reports Its Cost of Goods Sold as $20