Question
Determine the amount of cash paid to suppliers for each of the four independent situation below. Situation 1 Cost of Goods Sold: $250,000 Inventory :
Determine the amount of cash paid to suppliers for each of the four independent situation below.
Situation 1
Cost of Goods Sold: $250,000
Inventory : increase $5,500
Accounts Payable: $0
Cash paid to suppliers: ?
Situation 2
Cost of Goods Sold: $250,000
Inventory : $0
Accounts Payable: increase $6,500
Cash paid to suppliers: ?
Situation 3
Cost of Goods Sold: $350,000
Inventory : increase $5,500
Accounts Payable: increase $6,500
Cash paid to suppliers: ?
Situation 4
Cost of Goods Sold: $350,000
Inventory : decrease $5,500
Accounts Payable: decrease $6,500
Cash paid to suppliers: ?
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