Ciao
Corporation had January 1 and December 31 balances as follows:
1/1/11 12/31/11
Inventory
$90,000 $113,000
Accounts
Payable 61,000 69,000
For
2011, the cost of goods sold was $550,000. Calculate Ciao’s 2011 cash paid to
suppliers of merchandise.
|
Cost of
goods sold
|
$550,000
|
|
Add:
Increase in inventory
|
23,000
|
|
Purchases
|
573,000
|
|
Deduct:
Increase in accounts payable
|
8,000
|
|
Cash
paid to suppliers
|
$565,000
|
