A Company's Inventory Balance at the End of the Year

question 74

Multiple Choice

A company's Inventory balance at the end of the year was $188,000 and $200,000 at the beginning of the year. Its Accounts Payable balance at the end of the year was $84,000 and $80,000 at the beginning of the year, and its cost of goods sold for the year was $720,000. The company's total amount of cash payments for merchandise during the year equals:

• A) $720,000.
• B) $736,000.
• C) $712,000.
• D) $728,000.
• E) $704,000.

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Definitions:

Secured Claims

are creditor's claims that are protected by a security interest in the assets of the debtor, giving the creditor a right to repossess the collateral if the debtor fails to fulfill the obligations.

Unsecured Claims

Debts or claims for which the creditor does not have any collateral security.

Chapter 12

A type of bankruptcy proceeding in the United States that provides for adjustment of debts of a "family farmer" or "family fisherman."

Family Farmers

Small-scale farmers who own and operate their farms primarily with family labor, focusing on the sustainability of agriculture and rural communities.