Gary Company reports a $15,000 increase in inventory and a $5,000 increase in accounts payable during the year. Cost of Goods Sold for the year was $160,000. The cash payments made to suppliers were
A) $160,000.
B) $170,000.
C) $140,000.
D) $155,000.

Question

Quizplus · Accepted Answer

The cash payments to suppliers are calculated as: Cost of Goods Sold ($160,000) + Increase in Inventory ($15,000) - Increase in Accounts Payable ($5,000) = $170,000.

Gary Company Reports a $15,000 Increase in Inventory and a $5,000