Question
The financial statements for Warren Company show the following: Cost of goods sold $725,000 Beginning Balance Ending Balance Merchandise Inventory $45,000 $56,000 Accounts Receivable 53,000
The financial statements for Warren Company show the following:
Cost of goods sold $725,000
|
| Beginning Balance | Ending Balance |
| Merchandise Inventory | $45,000 | $56,000 |
| Accounts Receivable | 53,000 | 50,000 |
| Accounts Payable | 37,000 | 42,000 |
Based on this information, cash paid for merchandise was
| a. | $736,000 |
| b. | $719,000 |
| c. | $731,000 |
| d. | $741,000 |
ANSWER is C but why???
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Survey of Accounting
Authors: Carl S. Warren
7th edition
1285974360, 1285183487, 9781285974361, 978-1285183480
