The amount owing to suppliers for inventory purchases at the beginning of the year is $118 000 and at the end of the year is $94 000.If total credit purchases of inventory for the year are $160 000,the cash paid to suppliers of inventory for the year is:
A) $184 000
B) $66 000
C) $278 000
D) $254 000

Question

Quizplus · Accepted Answer

To calculate the cash paid to suppliers of inventory for the year, we need to use the formula:
Cash paid = Total credit purchases + Beginning balance of accounts payable - Ending balance of accounts payable
Cash paid = $160 000 + $118 000 - $94 000
Cash paid = $184 000

Therefore, the best choice is A, as it gives us the correct answer using the above formula.

The Amount Owing to Suppliers for Inventory Purchases at the Beginning