The financial statements of Juliet Company show the following: $$\begin{array} { | l | r | r | }
\hline & \text { Beginning balance } & \text { Ending balance } \
\hline \text { Trade receivables } & \$ 28,000 & \$ 22,000 \
\hline \text { Inventories } & \$ 38,400 & 32,000 \
\hline \text { Trade payables } & \$ 11,000 & \$ 15,000 \
\hline \text { COGS } & & \$ 74,000 \
\hline
\end{array}$$ How much cash was paid out to suppliers?
A) $15,000
B) $70,000
C) $85,000
D) $67,600

Question

The financial statements of Juliet Company show the following: $$\begin{array} { | l | r | r | } 
\hline & \text { Beginning balance } & \text { Ending balance } \
\hline \text { Trade receivables } & \$ 28,000 & \$ 22,000 \
\hline \text { Inventories } & \$ 38,400 & 32,000 \
\hline \text { Trade payables } & \$ 11,000 & \$ 15,000 \
\hline \text { COGS } & & \$ 74,000 \
\hline
\end{array}$$ How much cash was paid out to suppliers?
A) $15,000
B) $70,000
C) $85,000
D) $67,600

Quizplus · Accepted Answer

To calculate the cash paid out to suppliers, we use the formula: Cash Paid to Suppliers = COGS + Ending Inventory - Beginning Inventory + Beginning Payables - Ending Payables. Plugging in the values: $74,000 + $32,000 - $38,400 + $11,000 - $15,000 = $67,600.

The Financial Statements of Juliet Company Show the Following How Much Cash Was Paid Out to Suppliers? A) $15,000

The Financial Statements of Juliet Company Show the Following How Much Cash Was Paid Out to Suppliers?
A) $15,000