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

question 102

Multiple Choice

Use the following information about the current year's operations of a company to calculate the cash paid for merchandise. $\begin{array}{c}\begin{array}{|l|}\hline \text {Cost of goods sold.}\\\hline \text {Merchandise inventory, January 1}\\\hline \text {Merchandise inventory, December 31}\\\hline \text {Accounts payable, January 1}\\\hline \text {Accounts payable, December 31}\\\hline\end{array}\begin{array}{r|}\hline\$ 226,000 \\\hline54,800 \\\hline57,400 \\\hline54,400\\\hline59,800\\\hline \end{array}\end{array}$

• A) $218,000.
• B) $223,200.
• C) $220,000.
• D) $228,800.
• E) $234,000.

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Definitions:

Public Company Accounting Oversight Board

An independent oversight body responsible for supervising the audits of public companies to protect investors and the public interest.

Whistle-Blowing Protection

Legal safeguards for employees who expose wrongdoing, corruption, or illegal activities within their organization.

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An ethical principle suggesting that one should treat others as one's self would wish to be treated.

Freedom

The power or right to act, speak, or think as one wants without hindrance or restraint.