Answer:
c. 738,000
Explanation:
The movement in the balance of inventory at the start and end of a period is as a result of sales and purchases. While sales reduces the balance in inventory, purchases increases the balance. This may be expressed mathematically as
Opening balance + purchases - cost of goods sold = closing balance
The movement in the accounts payable balance at the start and end of an accounting period is due to cash payments, and additional credit purchases.
This may be expressed mathematically as
opening balance + purchases - cash paid = closing balance
Hence,
197,000 + purchases - 730,000 = 210,000
purchases = 210,000 + 730,000 - 197,000
= $743,000
Using the payables equation,
89,000 + 743,000 - cash paid = 94,000
Cash paid = 89,000 + 743,000 - 94,000
= $738,000
