The following information is available for Buckeye Company: January 1st, 2003 De
ID: 2457899 • Letter: T
Question
The following information is available for Buckeye Company:Accounts payable: $65,000 $50,000January 1st, 2003 December 31st,2003
Inventory: $74,000 $82,000
Buckeye Company reported $120,000 of cash paid to suppliers forpurchases of inventory in its 2003 cash flow statement. CalculateBuckeye's cost of goods sold for 2003.
January 1st, 2003 December 31st,2003
Accounts payable: $65,000 $50,000
Inventory: $74,000 $82,000
Buckeye Company reported $120,000 of cash paid to suppliers forpurchases of inventory in its 2003 cash flow statement. CalculateBuckeye's cost of goods sold for 2003.
Explanation / Answer
$120,000
=
Purchases + $65000 - $50000
$120,000
=
Purchases + $15000
Purchases
=
$120000 - $15000
=
$105,000
Cost of goods sold2003 = Beginning inventory + Purchases- Ending inventory = $74000 + $105000 -$82000 = $179000 - $82000 = $97,000 Notes: Cash paid tosuppliers = Purchase + Beginning Accountspayable - ending Accounts payable$120,000
=
Purchases + $65000 - $50000
$120,000
=
Purchases + $15000
Purchases
=
$120000 - $15000
=
$105,000
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