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Kazeer [188]
2 years ago
8

Park Place Company reported cost of goods sold of $140,000 for the year 2020. Park Place also reported the following amounts on

its balance sheets. Jan. 1, 2020Dec. 31, 2020 Inventory$25,000$27,500 Accounts payable15,00014,500 What amount would be reported as cash paid to suppliers in the operating activities section of the statement of cash flows using the direct method
Business
1 answer:
Paul [167]2 years ago
6 0

Answer:

the cash paid to supplier is $143,000

Explanation:

The computation of the cash paid to the supplier is given below;

Purchases = Ending inventory + cost of goods sold - beginning inventory

= $27,500 + $140,000 - $25,000

= $142,500

Now the Cash paid to supplier is

= Beginning account payable + purchases - ending account payable

= $15,000 + $142,500 - $14,500

= $143,000

hence the cash paid to supplier is $143,000

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