Good morning,

Could you please explain me how to calculate the COGS base on the below information?

Based on the information below and considering that this company paid $213,500 in cash to its suppliers during the year, what is the company's cost of goods sold for 2015? Assume that the only source of Accounts Payable is the purchase of inventory on credit.

1/1/2015 12/31/2015

Inventory

$122,400 $134,560

Accounts payable

$54,000 $123,000