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

question 36

Multiple Choice

Use the following information about the current year's operations of a company to calculate the cash paid for merchandise. $\begin{array} { l } \text {Cost of goods sold. } &\$735,000\\ \text {Merchandise inventory, January 1. } &84,700\\ \text {Merchandise inventory, December 31 } &82,400\\ \text {Accounts payable, January 1. } &54,500\\ \text {Accounts payable, December 31. } &60,200\\\end{array}$

• A)$727,000.
• B)$726,300.
• C)$732,700.
• D)$737,700.
• E)$737,300.

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Definitions:

Guttation

The exudation of drops of water from the pores of plants, usually at the tips or edges of leaves, due to root pressure in a humid environment.

Transpiration

Transpiration is the process by which water vapor is lost from plants to the atmosphere, mainly through the stomata in leaves.

Root Pressure

The pressure in xylem sap that occurs as a result of the active absorption of mineral ions followed by the osmotic uptake of water into roots from the soil.

Dendrochronology

A method of dating that uses the annual rings of trees.