Use the information provided about the current year operations of Upper Down Company to calculate cash paid for merchandise.
A) $110,800.
B) $111,200.
C) $111,600.
D) $112,800.
E) $112,900.

Question

Use the information provided about the current year operations of Upper Down Company to calculate cash paid for merchandise. 
A) $110,800. 
B) $111,200. 
C) $111,600. 
D) $112,800. 
E) $112,900.

Quizplus · Accepted Answer

Cash paid for merchandise can be calculated using the following formula: beginning inventory + purchases - ending inventory.

Beginning inventory = $20,000 
Cost of goods sold = $90,000 
Ending inventory = $18,400

Therefore, cash paid for merchandise = $20,000 + $90,000 - $18,400 = $111,600.

Hence, the best choice is C.

Use the Information Provided About the Current Year Operations of Upper