Einstein Corporation Reported a Decrease in Inventory of $15,000

question 132

Multiple Choice

Einstein Corporation reported a decrease in inventory of $15,000.The cost of goods sold for the year was $180,000.There was also a $5,000 decrease in accounts payable from the beginning of the year to the end of the year.What is Einstein's cash payment to suppliers for inventory?

• A)$158,000
• B)$170,000
• C)$188,000
• D)$202,000

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Definitions:

Market Value

The present rate at which a service or asset is available for purchase or sale in the market.

Equity

The value of an asset after deducting the amount of all liabilities on that asset. In investing, it often refers to the ownership interest held by shareholders in a corporation.

Firm's Debt

The total amount of money a company owes to creditors, including loans, bonds, and other forms of debt.

Risk-Free Rate

The theoretical rate of return of an investment with zero risk of financial loss.