In: Accounting
Use the following information about the current year's
operations of a company to calculate the cash paid for
merchandise.
Cost of goods sold……………………………….. | $ 735,000 |
Merchandise inventory, January 1………………. | 84,700 |
Merchandise inventory, December 31…………… | 82,400 |
Accounts payable, January 1……………………. | 54,500 |
Accounts payable, December 31……………….. | 60,200 |
cash paid for merchandise | 727,000.00 |
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Please find below the answer | |
Statementshowing Computations | |
Paticulars | Amount |
Cost of goods sold | 735,000.00 |
Add Merchandise inventory, December 31 | 82,400.00 |
Goods available for sale | 817,400.00 |
Less Merchandise inventory, January 1 | (84,700.00) |
Purchases | 732,700.00 |
Purchases | 732,700.00 |
Accounts payable, January 1 | 54,500.00 |
TotalAmount to be paid | 787,200.00 |
Accounts payable, December 31 | (60,200.00) |
cash paid for merchandise | 727,000.00 |