Answered step by step
Verified Expert Solution
Question
1 Approved Answer
4. Geographic Enterprise's Inventory account decreased by $37,590 and its Accounts Payable account (which relates solely to the purchase of merchandise) decreased by $13,790
4. Geographic Enterprise's Inventory account decreased by $37,590 and its Accounts Payable account (which relates solely to the purchase of merchandise) decreased by $13,790 during the year. Geographic also reported net sales revenues of $856,000 and total operating expenses of $799,600 during the same period. The gross profit margin ratio was 35% during the year. The company always purchases the half of inventory on account during the year. What is the amount of Geographic's cash payments to its suppliers for inventory during the year?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started