Merchandise Inventory Increased $28,000 and Accounts Payable Decreased $19,600 During

question 92

Multiple Choice

Merchandise Inventory increased $28,000 and Accounts Payable decreased $19,600 during the year.Accounts Payable relates only to the acquisition of merchandise inventory.Sales were $796,000 and Cost of Goods Sold was $549,700.Compute the payment made to the suppliers for inventory.

• A) $577,700
• B) $569,300
• C) $597,300
• D) $47,600

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Definitions:

Margin Of Safety

The difference between actual or projected sales and the break-even point, indicating the risk level of not covering fixed costs.

Digital Camera

An electronic device that captures and stores photographs digitally, allowing for immediate viewing, deleting, or transferring of images.

Target Profit

The desired amount of profit a company aims to achieve within a specific period.

Unit Sales

A measurement of the total quantity of units of a product sold by a company.