Use the following information about the current year's operations of a company to calculate the cash paid for merchandise.
A) $218,000.
B) $223,200.
C) $220,000.
D) $228,800.
E) $234,000.

Question

Use the following information about the current year's operations of a company to calculate the cash paid for merchandise. 
A) $218,000. 
B) $223,200. 
C) $220,000. 
D) $228,800. 
E) $234,000.

Quizplus · Accepted Answer

Increase in inventory = $57,400 − $54,800 = $2,600
Purchases = $226,000 + $2,600 = $228,600
Increase in Accounts payable = $59,800 − $54,400 = $5,400
Cash paid for Merchandise = $228,600 − $5,400 = $223,200
Reconstructed entry:
 11eaadfd_cc32_bdba_95d8_231ee03a3b20_TB6948_00

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