Newton Corporation Reported an Increase in Inventory of $75,000

question 40

Multiple Choice

Newton Corporation reported an increase in inventory of $75,000.The cost of goods sold for the year was $180,000.There was also a $7,000 decrease in accounts payable from the beginning of the year to the end of the year.What is Newton's cash payment to suppliers for inventory?

• A)$187,000
• B)$248,000
• C)$255,000
• D)$262,000

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Definitions:

Ultimate Pension Payments

The total amount of pension payments that will be made to an employee under a defined benefit pension plan over the course of their retirement.

Service Cost

The actuarial present value of benefits earned by employees in the current period under a defined benefit plan, included in pension expense.

Interest Cost

The cost incurred by an entity for borrowing funds, typically reflected as an expense in the income statement.

Pension Expense

The annual cost recognized by an employer for maintaining a retirement plan for its employees.