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Crazy boy [7]
3 years ago
10

Lynette Company's Inventory balance at 12/31/04 was $200,000 and was $188,000 at 12/31/05. Its Accounts Payable balance e at 12/

31/04 was $80,000 and was $84,000 at 12/31/05, and its cost of goods sold for 2005 was $720,000. The company's total amount of cash payments for merchandise in 2005 equals: A) $704,000. B) $712,000. C) $720,000. D) $728,000. E) $736,000.
Business
1 answer:
Viefleur [7K]3 years ago
3 0

Answer:

A) $704,000.

Explanation:

For computing the cash payments we need to calculate the following amounts which are as follows

Total purchases = cost of goods sold + ending inventory - opening inventory

= $720,000 + $188,000 - $200,000

= $708,000

Now cash payment to merchandise is

= Beginning account payable balance + purchased made - ending account payable balance

= $80,000 + $708,000 - $84,000

= $704,000

Hence, the correct option is A. $704,000

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The listing associate should present the offer to the seller as a potential backup offer for further negotiation.

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An employee earns $5,550 per month working for an employer. The FICA tax rate for Social Security is 6.2% of the first $127,200
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The amount the employer should record as payroll taxes expense for the employee for the month of January is $695.75

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As the contestant with the longest winning streak in the history of Jeopardy, Ken Jennings won more than $2.5 million. Suppose h
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Explanation:

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