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alisha [4.7K]
3 years ago
8

A company purchases its inventory from suppliers on account. During the year, its inventory account increased by $16 million and

its accounts payable to suppliers decreased by $4 million. If cost of goods sold was $500 million, its cash outflows to inventory suppliers totaled:
Business
1 answer:
sesenic [268]3 years ago
3 0

Answer:

cash outflows to inventory suppliers totaled:  $512 million

Explanation:

<u>Calculation of Cash flows to inventory suppliers :</u>

Cost of goods sold                                $500 million

<em>Less</em> decrease in Accounts payable     ($4 million)

<em>Add </em>Increase in Inventory                      $16 million

Cash outflows to inventory suppliers  $512 million

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