During the Year, Marigold Corp

question 17

Multiple Choice

During the year, Marigold Corp.reported an increase in Merchandise Inventory of $25,000.Cost of Goods Sold for the year was $150,000, and there was an $8,000 decrease in Accounts Payable.What were the cash payments to suppliers during the year?

• A)$117,000
• B)$133,000
• C)$167,000
• D)$183,000

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Definitions:

Credit Manager

A Credit Manager is a professional responsible for overseeing a company's credit policies, assessing creditworthiness, and managing credit lines.

Carrying Costs

The total cost of holding inventory, including storage, insurance, spoilage, and opportunity costs.

Shortage Costs

Costs incurred from not having enough inventory to meet demand, including lost sales and customer dissatisfaction.

Current Assets

Assets that are expected to be converted into cash, sold, or consumed within one year or the normal operating cycle, whichever is longer.