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

question 261

Multiple Choice

Use the following information about the current year's operations of a company to calculate the cash paid for merchandise.
$$\begin{array} { | l | r | } \hline \text { Cost of goods sold } \ldots \ldots \ldots \ldots \ldots \ldots \ldots \ldots \ldots \ldots \ldots & \$ 226,000 \\\hline \text { Merchandise inventory, January } 1 \ldots \ldots \ldots \ldots \ldots \ldots & 54,800 \\\hline \text { Merchandise inventory, December } 31 \ldots \ldots \ldots \ldots \ldots & 57,400 \\\hline \text { Accounts payable, January } 1 \ldots \ldots \ldots \ldots \ldots \ldots \ldots \ldots & 54,400 \\\hline \text { Accounts payable, December } 31 \ldots \ldots \ldots \ldots \ldots \ldots & 59,800 \\\hline\end{array}$$

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

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Definitions:

Formula

A mathematical relationship or rule expressed in symbols.

License

A legal permission granted by competent authority to engage in an activity or use a property that would be illegal without such permission.

Trade Name

A business's official name under which it operates and is known to the public, distinct from its legal registered name.

Sole Proprietor

An individual who owns and operates a business alone, without forming a corporation or partnership, bearing unlimited liability.