Goldman Corp.reported the following information for 2017 and 2018. $\begin{array}{lr}
\text { Accounts payable, December } 31,2017 & \$ 51,000 \
\text { Accounts payable, December } 31,2018 & 46,000 \
\text { Purchases-2018 } & 467,000
\end{array}$
Assuming all purchases are on credit,how much cash was paid for merchandise during 2018?

A)$421,000
B)$462,000
C)$467,000
D)$472,000

Question

Goldman Corp.reported the following information for 2017 and 2018.  $\begin{array}{lr}
\text { Accounts payable, December } 31,2017 & \$ 51,000 \
\text { Accounts payable, December } 31,2018 & 46,000 \
\text { Purchases-2018 } & 467,000
\end{array}$
Assuming all purchases are on credit,how much cash was paid for merchandise during 2018?

A)$421,000
B)$462,000
C)$467,000
D)$472,000

Quizplus · Accepted Answer

To calculate the cash paid for merchandise during 2018, we use the formula: Cash Paid for Merchandise = Purchases + Beginning Accounts Payable - Ending Accounts Payable. Plugging in the given values: Cash Paid = $467,000 + $51,000 - $46,000 = $472,000.

Goldman Corp Assuming All Purchases Are on Credit,how Much Cash Was Paid