Data Solutions reports cost of goods sold of $75 million.Inventory at the beginning and end of the year are $8 million and $9 million,respectively.Accounts payable at the beginning and end of the year are $5 million and $3 million,respectively.What is the amount of cash paid to suppliers?

Question

Quizplus · Accepted Answer

The cash paid to suppliers is calculated as: COGS + Beginning Inventory - Ending Inventory + Ending Accounts Payable - Beginning Accounts Payable = $75M + $8M - $9M + $3M - $5M = $78 million.

Data Solutions Reports Cost of Goods Sold of $75 Million