In its May 31, 2017 annual report, Maloneck Ltd. (Maloneck) reported that it had inventory of $175,000

Question:

In its May 31, 2017 annual report, Maloneck Ltd. (Maloneck) reported that it had inventory of $175,000 and accounts payable of $104,000 on May 31, 2016, and inventory of $196,000 and accounts payable of $122,000 on May 31, 2017. Maloneck's income statement for the year ended May 31, 2017 reported cost of goods sold of $1,220,000.


Required:

Calculate the amount of cash that Maloneck paid to suppliers for purchases of inventory during fiscal 2017. Assume that accounts payable pertain only to the purchase of inventory on credit.


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...
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