Answer:
Cash paid to suppliers was = $190,000
Explanation:
Under the cash flow statement direct method,
Cash paid to supplier = Cost of goods sold + Increase in inventory - Increase in Accounts payable (1)
or, Cash paid to supplier = Cost of goods sold - Decrease in inventory + Decrease in Accounts payable (2)
Given,
Cost of goods sold = $200,000
Increase in inventory = $10,000
Increase in Accounts payable = $20,000
Putting the value in the 1st formula,
Cash paid to supplier = $200,000 + $10,000 - $20,000
Cash paid to supplier = $190,000
