Electronic Superstores inventory increases during the year by $5 million, and its accounts payable to suppliers increases

Question:

Electronic Superstore’s inventory increases during the year by $5 million, and its to suppliers increases by $7 million during the same period. What is the amount of cash paid to suppliers of merchandise during the reporting period if its cost of goods sold is $45 million?

Accounts Payable
Accounts payable (AP) are bills to be paid as part of the normal course of business.This is a standard accounting term, one of the most common liabilities, which normally appears in the balance sheet listing of liabilities. Businesses receive...