Selected Data for Kris Corporation's Comparative Balance Sheets for Year
Question 88
Question 88
Multiple Choice
Selected data for Kris Corporation's comparative balance sheets for Year 1 and Year 2 are as follows: Assets Cash Accounts receivable (net) Inventory Equipment (net) Total assets Liabilities and Equity Accounts payable Income taxes payable Bonds payable Common stock Retained earnings Total liabilities and Equity A brief income statement for Year 2 shows the following: Sales Cost of goods sold Operating expenses Depreciation Income tax expense Net Income Year 1 $100,00050,000100,000$300,000$550,000$150,00080,000100,000100,000120,000$550,000$500,000100,00050,000100,000 Year 2 ($50,000) 100,000250,000350,000$650,000$100,00030,00080,000200,000240,000$650,000$900,000750,000$150,000 -How much cash did Kris pay to suppliers for inventory during Year 2? Assume all purchases are on credit.
A) $150,000 B) $400,000 C) $500,000 D) $700,000
Correct Answer:
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