Dalton Corp.'s Accounts Payable balance at the end of 2009 and 2010 was $200,000 and $300,000, respectively. During 2010, Dalton bought $1,200,000 of inventory. How much cash did Dalton pay its vendors for inventory in 2010?
A) $1,100,000
B) $1,200,000
C) $1,300,000
D) $1,400,000
E) $1,500,000

Question

Quizplus · Accepted Answer

The cash paid to vendors can be calculated by adding the purchases to the beginning accounts payable, then subtracting the ending accounts payable: $1,200,000 + $200,000 - $300,000 = $1,100,000.