Use the following information about the current year's operations of a company to calculate the cash paid for merchandise.
A)$522,800
B)$533,600
C)$528,200
D)$536,000
E)$543,800

Question

Use the following information about the current year's operations of a company to calculate the cash paid for merchandise. 
A)$522,800 
B)$533,600 
C)$528,200 
D)$536,000 
E)$543,800

Quizplus · Accepted Answer

To calculate cash paid for merchandise, we need to use the formula: cost of goods sold + increase in inventory - decrease in inventory. From the information given in the table, we can see that cost of goods sold is $531,000, and the increase in inventory is $2,600. However, there is no information given about any decrease in inventory. Therefore, we can assume that there is no decrease in inventory, and the cash paid for merchandise is calculated as: 
Cash paid for merchandise = Cost of goods sold + Increase in inventory - Decrease in inventory = $531,000 + $2,600 - $0 = $533,600. Therefore, the correct choice is B.

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