Wireless Technologies reports cost of goods sold of $40 million.Inventory at the beginning and end of the year are $4 million and $3 million,respectively.Accounts payable at the beginning and end of the year are $3 million and $6 million,respectively.What is the amount of cash paid to suppliers?

Question

Quizplus · Accepted Answer

The formula to calculate cash paid to suppliers is: Cost of goods sold + beginning inventory - ending inventory - beginning accounts payable + ending accounts payable. Plugging in the given values: $40 million + $4 million - $3 million - $3 million + $6 million = $36 million. Therefore, the correct answer is (B).

Wireless Technologies Reports Cost of Goods Sold of $40 Million