Toro Company recognized $655,000 of cost of goods sold in 2010,in addition its implementation of a just-in-time inventory system allowed it to reduce its inventory from $325,000 at the beginning of the year to $230,000 at the end of 2010.How much cash did Toro spend for inventory in 2010?
A) $655,000
B) $980,000
C) $560,000
D) $620,000

Question

Quizplus · Accepted Answer

$655,000 + $230,000 - $325,000 = $560,000

Toro Company Recognized $655,000 of Cost of Goods Sold in 2010,in