Based on the Following Information Provided About a Company's Operations,calculate

question 28

Essay

Based on the following information provided about a company's operations,calculate its cost of goods purchased and its cash paid for merchandise.
$\begin{array}{|l|r|}\hline \text { Cost of goods sold } & \$ 413,000 \\\hline \text { Merchandise inventory, beginning year } & 70,000 \\\hline \text { Accounts payable, beginning year } & 52,000 \\\hline \text { Merchandise inventory, end-of-year } & 67,000 \\\hline \text { Accounts payable, end-of-year } & 48,000\\\hline \end{array}$

---

Definitions:

Depreciation

The reduction in the value of an asset over time, particularly for tax purposes.

Equipment

Tangible property used in operations, such as machinery or computer hardware, which can often be depreciated for tax purposes.

Capital Asset

A long-term asset such as equipment, real estate, or securities, which is not easily sold in the regular course of a business's operations for cash.

Taxpayer's Home

The primary place of abode of a taxpayer that determines tax liabilities and benefits.