Beginning and Ending Balances for Relevant Balance Sheet Accounts Are

question 36

Essay

Beginning and ending balances for relevant balance sheet accounts are as follows:
$$\begin{array} { | l | r | r | } \hline & 12 / 31 / 17 & 1 / 01 / 17 \\\hline \text { Merchandise inventary } & \$ 32,000 & \$ 18,000 \\\hline \text { Accaunts payalale } & 13,000 & 20,000 \\\hline\end{array}$$
During 2017, cost of goods sold was $148,000. Calculate the amount of cash paid to suppliers of merchandise inventory.

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Definitions:

Depreciation Expense

The portion of an asset's initial cost allocated over a specific period as an expense, reflecting its usage and deterioration.

Operating Activities

Activities that relate directly to the business's primary operations, like selling products or services, as opposed to investment or financing activities.

Accounts Receivable

Money owed to a company by its clients or customers for products or services sold on credit.

Depreciation

The systematic allocation of the cost of a tangible asset over its useful life, reflecting the decrease in value due to wear and tear, age, or obsolescence.