Selected Data for Kris Corporation's Comparative Balance Sheets for Year

question 54

Multiple Choice

Selected data for Kris Corporation's comparative balance sheets for Year 1 and Year 2 are as follows:
$\begin{array}{lrr}\text { Assets } & \text { Year 1 } & \text { Year 2 }\\\hline \text { Cash } & \$ 100,000 & (\$ 50,000) \\\text { Accounts receivable (net) } & 50,000 & 100,000 \\\text { Inventory } & 100,000 & 250,000 \\\text { Equipment (net) } & \$ 300,000 & \underline{350,000} \\{\text { Total assets }} & \$ 550,000 & \$ 650,000\\\\\text { Liabilities and Equity }\\\text { Accounts payable } & \$ 150,000 & \$ 100,000 \\\text { Income taxes payable } & 80,000 & 30,000 \\\text { Bonds payable } & 100,000 & 80,000 \\\text { Common stock } & 100,000 & 200,000 \\\text { Retained earnings } & 120,000 & 240,000 \\\quad \text { Total liabilities and Equity } & \$ 550,000 & \$ 650,000\\\\\text { A brief income statement for Year } 2 \text { shows the }\\\text { following: }\\\text { Sales }&&\$900,000\\\text { Cost of goods sold } & \$ 500,000 \\\text { Operating expenses } & 100,000 \\\text { Depreciation } & 50,000 \\\text { Income tax expense } & 100,000&750,000 \\\text { Net Income }&&\$150,000\end{array}$
-How much cash did Kris pay to suppliers for inventory during Year 2? Assume all purchases are on credit.

• A)$150,000
• B)$400,000
• C)$500,000
• D)$700,000

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Definitions:

Igneous Rock

A type of rock formed through the cooling and solidification of magma or lava, with examples including granite and basalt.

Gabbro

A medium- to coarse-grained mafic igneous rock, the phaneritic equivalent of basalt.

Feldspar

Feldspar is a group of abundant rock-forming minerals that are major components of igneous, metamorphic, and sedimentary rocks, characterized by their silicate structure.

Quartz

A hard, crystalline mineral composed of silicon dioxide, widely distributed in many types of rocks and used in various industrial applications.