During the year, Kawartha Corp.reported an increase in Inventory of $40,000.Cost of Goods Sold for the year was $125,000, and there was an $6,000 decrease in Accounts Payable.What were the cash payments to suppliers during the year?
A)$79,000
B)$91,000
C)$159,000
D)$171,000

Question

Quizplus · Accepted Answer

The cash payments to suppliers can be calculated using the formula: Cash Payments = COGS + Increase in Inventory - Decrease in Accounts Payable. Therefore, Cash Payments = $125,000 + $40,000 + $6,000 = $171,000.

During the Year, Kawartha Corp