Question 1 (Direct Method Cash Payments to Suppliers)

Meatloaf Inc. had January 1 and December 31 balances as follows:

1/1/2015 12/31/2015

Inventory $95,000 $113,000

Accounts Payable $61,000 $69,000

For 2015, cost of goods sold was $500,000. Compute Meatloaf Inc.s 2015 cash payments to suppliers. Assume all inventory is purchased on account and accounts payable is only used for inventory purchases.