Squeeze Company Reports the Following If Cost of Goods Sold for the Year Is $220,000

question 74

Multiple Choice

Squeeze Company reports the following: $$\begin{array} { l c c } & \text { End of Year } & \text { Beginning of Year } \\\text { Inventory } & \$ 25,000 & \$ 42,000 \\\text { Accounts Payable } & 22,000 & 12,000\end{array}$$ If cost of goods sold for the year is $220,000, the amount of cash paid to suppliers is

• A)$227,000.
• B)$205,000.
• C)$193,000.
• D)$247,000.

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Definitions:

Borrowed Money

Funds that are obtained through loans or credits, which must be repaid with interest.

Financing Activities

Transactions and events that affect the long-term liabilities and equity of a company, including issuing debt, issuing equity, and paying dividends.

Cash Flow

The net amount of cash and cash-equivalents being transferred into and out of a business, indicating the organization's liquidity.

Bond Principal

Bond principal, or face value, is the amount that the issuer agrees to pay the bondholder at maturity, excluding any interest payments.