Question

Use the following information about the current year's operations of a company to calculate the cash paid for merchandise. Cost of goods sold $ 243,000 Merchandise inventory, January 1 71,800 Merchandise inventory, December 31 72,700 Accounts payable, January 1 69,700 Accounts payable, December 31 76,800 Multiple Choice $235,000. $236,800. $251,000. $249,200. $243,000.

Answer 1

Answer:

Cash paid for merchandise is $236,800

Explanation:

Particulars                                                           Amount $

Cost of goods sold                                             243,000

Add: Merchandise inventory, December 31      72,700

Less: Merchandise inventory, January 1           -71,800

Purchases during the period                              243,900

Add: Accounts payable, January 1                      69,700

Less: Accounts payable, December 31              -76,800

Cash paid for merchandise                                 236,800