Use the information provided about the current year operations of Upper Down Company to calculate cash paid for merchandise.
A)$110,800
B)$111,200
C)$111,600
D)$112,800
E)$112,900

Question

Quizplus · Accepted Answer

Cash paid for merchandise can be calculated using the formula:
Beginning Inventory + Purchases - Ending Inventory = Cost of Goods Sold
where, 
Beginning Inventory = $40,200 
Purchases = $121,000 
Ending Inventory = $49,600 
Cost of Goods Sold = $111,600

Therefore, the cash paid for merchandise would be equal to the cost of goods sold, which is $111,600. The answer is option C.

Use the Information Provided About the Current Year Operations of Upper