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

To calculate cash paid to suppliers, we need to use the following formula:
Cash paid to suppliers = Cost of goods sold + increase in accounts payable - decrease in inventory
Cash paid to suppliers = $40 million + ($6 million - $3 million) - ($4 million - $3 million)
Cash paid to suppliers = $36 million
Therefore, the correct answer is B.

Wireless Technologies Reports Cost of Goods Sold of $40 Million