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Greeley [361]
3 years ago
15

Bramble Corporation had January 1 and December 31 balances as follows. 1/1/17 12/31/17 Inventory $112,000 $133,000 Accounts paya

ble 55,000 64,000 For 2017, cost of goods sold was $592,000. Compute Bramble’s 2017 cash payments to suppliers.
Business
1 answer:
melisa1 [442]3 years ago
8 0

Answer:

$604,000

Explanation:

Given that,

                                  Opening            Closing

Inventory                   $112,000           $133,000

Accounts payable     $55,000           $64,000

Cost of goods sold = $592,000

Cost of goods sold = Opening stock + Purchases - Closing stock

Purchases = Cost of goods sold - Opening stock + Closing stock

                  = $592,000 - $112,000 + $133,000

                  = $613,000

Bramble’s 2017 cash payments to suppliers:

= Opening accounts payable + Purchases - Closing accounts payable

= $55,000 + $613,000 - $64,000

= $604,000

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