Cash Payments for Merchandise—Direct Method The cost of goods sold reported on the income statement was...
Cash Payments for Merchandise—Direct Method
The cost of goods sold reported on the income statement was $185,000. The accounts payable balance increased $8,000, and the inventory balance increased by $11,100 over the year.
Determine the amount of cash paid for merchandise.
Homework Answers
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Cash paid for merchandise = Cost of Goods Sold + increase in inventory - increase in accounts payable = 185,000 + 11,100 - 8,000 = 188,100 |
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Cash Payments for Merchandise—Direct Method
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