Use the Information Below to Answer the Following Questions:
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question 34

Multiple Choice

Use the information below to answer the following questions:
The following information is taken from the accounts of Arc Ltd for the year ended 30 June 2012 .
$\begin{array}{lr} & \$ \\ \text { Inventory, 1 July 2011 } & 90,000 \\ \text { Inventory, 30 June 2012 } & 95,000 \\ \text { Creditors, 1 July } 2011 & 70,000 \\ \text { Creditors, 30 June } 2012 & 60,000 \\ \text { Cash purchases } & 190,000 \\ \text { Cost of goods sold } & 420,000 \\ \text { Discount received from creditors } & 15,000\end{array}$
-What was the amount paid to suppliers (cash and credit) during the year?

• A) $190 000
• B) $420 000
• C) $610 000
• D) $435 000.

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Definitions:

Debt To Equity

The ratio signifying the comparative investment of shareholders' equity and debt in a company's assets.

Perpetuity Formula

A formula used to calculate the value of an endless series of cash flows, assuming a constant rate of return.

Cost

The monetary value spent to acquire goods or services, including manufacturing, production, or purchase costs.

Common Stock

Equity ownership in a corporation, giving shareholders voting rights and a share in the company's profits through dividends.