Baltimore Company pays cash for all inventory purchases. The company had a beginning inventory of $8,500 and an ending inventory of $6,900. Their cost of goods sold amounted to $55,000. Based on this information, the amount of cash paid for inventory purchases was:

Question

Quizplus · Accepted Answer

$6,900 ending balance + $55,000 cost of goods sold - $8,500 beginning balance = $53,400 paid for purchases

Baltimore Company Pays Cash for All Inventory Purchases