Use the Following Information About the Current Year's Operations of a Company

question 72

Multiple Choice

Use the following information about the current year's operations of a company to calculate the cash paid for merchandise. $\begin{array} { l } \text {Cost of goods sold. } &\$500,000\\ \text {Merchandise inventory, January 1. } &85,000\\ \text {Merchandise inventory, December 31 } &97,000\\ \text {Accounts payable, January 1. } &68,000\\ \text {Accounts payable, December 31. } &60,000\\\end{array}$

• A)$585,000.
• B)$508,000.
• C)$480,000.
• D)$512,000.
• E)$520,000.

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Definitions:

Necessities

Goods and services that are essential for survival, such as food, shelter, and healthcare, often characterized by inelastic demand.

Luxuries

Goods or services that are considered non-essential but are desired for their ability to provide comfort, convenience, or pleasure.

Elasticity Of Supply

A measure of how much the quantity supplied of a good responds to a change in the price of that good.

Inputs

Resources used in the production process, including labor, capital, materials, and energy.