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The financial statements of Seldin, Inc., provide the following information for the current year: Dec.31 Jan.1 Accounts receivable $ 35,000 $ 40,000 Inventory $ 55,000

The financial statements of Seldin, Inc., provide the following information for the current year:

Dec.31Jan.1
Accounts receivable$35,000$40,000
Inventory$55,000$51,000
Prepaid expenses$12,000$14,000
Accounts payable (for merchandise)$33,000$32,000
Accrued expenses payable$15,000$20,000
Net sales$260,000
Cost of goods sold$130,000
Operating expenses (including depreciation of $18,000)$80,000

Compute the amount of Seldin's cash payments for purchases of merchandise during the current year.

Multiple Choice

  • $130,000

  • $125,000

  • $133,000

  • $127,000

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