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Mary Kay Cosmetics
Selected Data and Additional Information from the Company's

Question 142

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Mary Kay Cosmetics
Selected data and additional information from the company's records are presented below:
 Balance Slicet Data 20142013 Cash $235,000246,000 Accountsreceivable $120,000$150,000 Inventories 56,00050,000 Accounts payable 38,00070,000 Salaries payable 10,0005,000 Equipment 110,00070,000 Accumulated depreciation 28,00032,000 Bondspayable 100,000200,000 Common stock 300,000200,000 Retained earnings 76,000400,000 Income Statement Data 2014 Net sales $920,000Cost of goods sold 700,000 Operating expense (excluding depreciation expense) 160,000 Net income (Includes depreciation expense and gain) 56,000Gain on sale of equipment 4,000\begin{array}{lll}\underline {\text { Balance Slicet Data }}&\underline { 2014 }&\underline { 2013 }\\ \text { Cash } & \$ 235,000 & 246,000 \\\text { Accountsreceivable } & \$ 120,000 & \$ 150,000 \\\text { Inventories } & 56,000 & 50,000 \\\text { Accounts payable } & 38,000 & 70,000 \\\text { Salaries payable } & 10,000 & 5,000 \\\text { Equipment } & 110,000 & 70,000 \\\text { Accumulated depreciation } & 28,000 & 32,000 \\\text { Bondspayable } & 100,000 & 200,000 \\\text { Common stock } & 300,000 & 200,000 \\\text { Retained earnings } &76,000& 400,000\\\\\underline {\text { Income Statement Data } }&&\underline { 2014 }\\\text { Net sales } && \$ 920,000 \\\text {Cost of goods sold } &&700,000\\\text { Operating expense (excluding depreciation expense) } &&160,000\\\text { Net income (Includes depreciation expense and gain) } &&56,000\\\text {Gain on sale of equipment } &&4,000\\\end{array} Additional information:
1. Equipment with a cost of $30,000 \$ 30,000 and a book value of $18,000 \$ 18,000 was sold for $22,000 \$ 22,000 during 2014 .
2. Common stock was issued to retire bonds payable duing 2014 .
3. The only items affecting retained earnings in 2014 were net income and dividends declared and paid. Refer to Mary Kay Cosmetics.What is the amount paid to suppliers for purchases of merchandise during 2014?

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$738,000
$700,000 (Cost of goo...

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