Question
4) Worldwide Corp.'s statement of financial position accounts as of December 31, 2019 and 2018 and information relating to 2019 activities are presented below. December
4) Worldwide Corp.'s statement of financial position accounts as of December 31, 2019 and 2018 and information relating to 2019 activities are presented below.
December 31,
20192018
Assets
Cash$440,000$160,000
Short-term investments800,000-
Accounts receivable (net)1,050,0001,140,000
Inventory1,160,0001,020,000
Long-term investments400,000600,000
Plant assets3,100,0002,000,000
Accumulated depreciation(700,000)(900,000)
Patent280,000300,000
Total assets$6,530,000$4,320,000
Liabilities and Equity
Accounts payable$1,490,000$1,210,000
Other accrued liabilities200,000250,000
Notes payable (nontrade)560,000-
Common Stock-$10 par1,600,0001,400,000
Additional paid-in capital800,000500,000
Retained earnings1,880,000960,000
Total equity and liabilities$6,530,000$4,320,000
Information relating to 2019 activities:
Net income for 2019 was $1,220,000. This amount includes net sales revenue of $4,500,000 and cost of goods sold of $2,200,000.
Equipment costing $1,000,000 and having a carrying amount of $320,000 was sold in 2019 for $360,000.
A long-term investment was sold in 2019 for $345,000. There were no other transactions affecting long-term investments in 2019.
20,000 ordinary shares were issued in 2019 for $25 a share.
Short-term investments consist of treasury bills maturing on 9/30/20.
Compute cash paid for merchandise.
A) $2,060,000
B) $2,200,000
C) $2,340,000
D) $2,620,000
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