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

question 216

Multiple Choice

Use the following information about the current year's operations of a company to calculate the cash paid for merchandise. $\begin{array}{c}\begin{array}{|l|}\hline \text {Cost of goods sold.}\\\hline \text {Merchandise inventory, January 1}\\\hline \text {Merchandise inventory, December 31}\\\hline \text {Accounts payable, January 1}\\\hline \text {Accounts payable, December 31}\\\hline\end{array}\begin{array}{r|}\hline\$500,000 \\\hline85,000 \\\hline97,000 \\\hline68,000\\\hline60,000\\\hline \end{array}\end{array}$

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

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