Carter Company Reports the Following If Cost of Goods Sold for the Year Is $210,000

question 134

Multiple Choice

Carter Company reports the following: $$\begin{array} { l c c } & \text { End of Year } & \text { Beginning of Year } \\\text { Inventory } & \$ 25,000 &\$40,000 \\\text { Accounts Payable } & 30,000 & 10,000\end{array}$$ If cost of goods sold for the year is $210,000, the amount of cash paid to suppliers is

• A)$215,000.
• B)$205,000.
• C)$175,000.
• D)$245,000.

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Definitions:

Balance Sheet

A financial statement that reports a company's assets, liabilities, and stockholders' equity at a specific point in time.

Paid Part

This involves the portion of an expense or debt that has been paid, as opposed to the remaining amount that is still owed.

Decrease Liabilities

Actions or transactions that result in the reduction of obligations owed by a company, improving its financial position.

Received Cash

Funds that have been physically or digitally transferred to an entity, reflecting an increase in its liquidity.