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Putnam, Inc. Comparative Balance Sheets December 31, 2019 2018 Assets: Current Assets: Cash $ 1,380,000 $1,080,000 Accounts Receivable (net) 3,120,000 2,160,000 Inventory 3,900,000 2,520,000 Prepaid
Putnam, Inc.
Comparative Balance Sheets
December 31,
2019
2018
Assets:
Current Assets:
Cash
$ 1,380,000
$1,080,000
Accounts Receivable (net)
3,120,000
2,160,000
Inventory
3,900,000
2,520,000
Prepaid Expenses
702,000
630,000
Total Current Assets
9,102,000
6,390,000
Long-Term Investments
450,000
Plant Assets:
Property, Plant & Equipment
4,380,000
2,880,000
Accumulated Depreciation
(900,000)
(540,000)
Total Plant Assets
3,480,000
2,340,000
Total Assets
$13,032,000
$8,730,000
Equities:
Current Liabilities:
Accounts Payable
$ 2,550,000
$2,190,000
Accrued Expenses
618,000
564,000
Dividends Payable
402,000
Total Current Liabilities
3,570,000
2,754,000
Long-Term Notes Payable
1,650,000
Stockholders' Equity:
Common Stock
6,000,000
4,800,000
Retained Earnings
1,812,000
1,176,000
Total Equities
$13,032,000
$8,730,000
Putnam, Inc.
Comparative Income Statements
December 31,
2019
2018
Net Credit Sales
$14,040,000
$7,506,000
Cost of Goods Sold
7,830,000
3,762,000
Gross Profit
6,210,000
3,744,000
Operating Expenses (including Income Tax)
5,172,000
2,748,000
Net Income
$1,038,000
$ 996,000
Additional Information:
a. Accounts receivable and accounts payable relate to merchandise held for sale in the normal course of business. The allowance for bad debts was the same at the end of 2019 and 2018, and no receivables were charged against the allowance. Accounts payable are recorded net of any discount and are always paid within the discount period.
b. The proceeds from the note payable were used to finance the acquisition of property, plant, and equipment. Capital stock was sold to provide additional working capital.
Reference: Ref 23-7
What amount of cash was paid on accounts payable to suppliers during 2019?
Select one:
A. $7,470,000.
B. $8,190,000.
C. $8,850,000.
D. $9,210,000.
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