Hickory Inc

question 54

Multiple Choice

Hickory Inc. reports the following: End of Year Beginning of Year
Merchandise Inventory $26,000 $42,000
Accounts Payable 33,000 18,000
If cost of goods sold for the year is $137,000, the amount of cash paid to suppliers is

• A)$168,000.
• B)$138,000.
• C)$136,000.
• D)$106,000.

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Definitions:

Renovation Cost

Expenses associated with updating or refurbishing an existing structure or space to improve its appearance or functionality.

Initial Investments

The initial capital outlay required to start a project, purchase assets, or establish a business.

Working Capital

The difference between a company's current assets and current liabilities, indicating the liquidity available to run its day-to-day operations.

Income Tax Expense

The amount of money a company owes in taxes based on its net income.