Question

QUESTION 7 KRJ Corporation reported cost of goods sold of $812 million for the year. Inventory at the beginning of the year was $118 million and at the end of the year it was $280 million. Accounts payable at the beginning of the year was $144 million and at the end of the year it was $135 million. How much cash (in $ millions) was paid for inventory purchased during the year? QUESTION 8 KRJ Corporation reported annual wages expense of $9,061 million. Wages payable at the beginning of the year was $344 million and at the end of the year it was $623 million. How much cash (in $ millions) was paid to employees as wages during the year?

Answer 1

Solution - Cost of Goods sold = $812 million Inventory at the beginning of the year = $118 million Inventory at the end of year = $200 million Increase in Inventory a Inventory at the end- Inventory - at the beginning * $ 280 million - $ 118 million = $162 million Accounts payable at the beginning of the year =$144 1 million Accounts payable at the end of year = $135 million Decrease in Accounts payable = Accounts payable at - the beginning - Accounts payable at the end = $ 14 million - $135 million z $ 9 million lash paid for Inventory purchased during the years) " for this we will first calculate purchases

in Inventory Purchases = = lost of Goods soldt Increase $ 812 million + $168 million $ 974 million lution 2 million lash paid for purchases during the year a e Purchases + Decrease in Accounts payable 7 $974 million + $9 million 2 $983 million ® Solutions Annual wage Expense = $9,061 million Wages payable at the beginning of the year = $344 wages payable at the end of the year = $623 million Increase in wages payable = wages payable at the - enda Wages payable at the beginning = $ 623 miljon - $ 344 million 2 $279 million Cash paid for salaries a Annual wage Expense - Increase in wages payable 3 $ 9,061 million - $ 279 million = $ 8,782 million