Given this information, what is the amount of cash paid for inventory?
A) $77,000
B) $78,000
C) $80,000
D) $81,000

Question

Quizplus · Accepted Answer

The amount of cash paid for inventory is $77,000. This is because the beginning inventory was $75,000, and the ending inventory was $73,000. Therefore, the cost of goods sold was $75,000 - $73,000 = $2,000. The amount of cash paid for inventory is equal to the cost of goods sold plus the ending inventory, which is $2,000 + $73,000 = $77,000.

Given This Information, What Is the Amount of Cash Paid