Question1

Based on the information below and considering that this company paid $322,500 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

1/1/2015 $23,400

12/31/2015 $34,560

Accounts payable

1/1/2015 $354,000

12/31/2015 $223,000