Use the following information about the current year's operations of a company to calculate the cash paid for merchandise.
A)$218,000.
B)$223,200.
C)$220,000.
D)$228,800.
E)$234,000.

Question

Use the following information about the current year's operations of a company to calculate the cash paid for merchandise. 
A)$218,000. 
B)$223,200. 
C)$220,000. 
D)$228,800. 
E)$234,000.

Quizplus · Accepted Answer

Increase in inventory = $57,400 - $54,800 = $2,600
Purchases = $226,000 + $2,600 = $228,600
Increase in Accounts payable = $59,800 - $54,400 = $5,400
Cash paid for Merchandise = $228,600 - $5,400 = $223,200

Use the Following Information About the Current Year's Operations of a Company