Pier 1 Imports reported cost of sales of $962 million for fiscal 2012. Inventory increased during the

Question:

Pier 1 Imports reported cost of sales of $962 million for fiscal 2012. Inventory increased during the year from $322 million to $356 million, and accounts payable (related to inventory purchases) decreased from $64 million to $59 million.

a. Estimate the cost of inventories purchased during 2012.

b. Estimate the cash payments made to inventory suppliers during 2012.

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...