The following selected account balances were taken from ABC Company\'s general l

Question

The following selected account balances were taken from ABC Company's general ledgers for 2019: anuar December 19 Inventory Accounts payable Salaries payable Investments Accounts receivable Land Notes payable Unearned revenue Common stock Retained earnings 47,000 50,000 9,000 68,000 69,000 58,000 95,000 17,000 100,000 23,000 56,000 28,000 4,000 75,000 53,000 88,000 120,000 25,000 170,000 35,000 The following information was taken from ABC Company's 2019 income statement: Sales revenue Cost of goods sold Salaries expense Net income $420,000 300,000 88,000 $32,000 Calculate the amount of cash paid to suppliers for purchases of inventory during 2019

Explanation / Answer

Inventory purchase = Cost of goods sold+Ending inventory-beginning inventory

                             = 300000+56000-47000

Inventory purchase = 309000

Cash paid to suppliers for purchase of inventory = Beginning account payable+inventory purchase-ending account payable

                                                                     = 50000+309000-28000

Cash paid to suppliers for purchases of inventory = 331000

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