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

question 56

Multiple Choice

Use the following information about the current year's operations of a company to calculate the cash paid for merchandise.
$\begin{array}{|l|r|}\hline \text { Cost of good sold } & \$ 536,000 \\\hline \text { Merchandise inventory, January 1 } & 64,800 \\\hline \text { Merchandise inventory, December 31 } & 57,000 \\\hline \text { Accounts payable, January 1 } & 64,400 \\\hline \text { Accounts payable, December 31 } & 59,000\\\hline \end{array}$

• A)$522,800
• B)$533,600
• C)$528,200
• D)$536,000
• E)$543,800

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Definitions:

Groundwater

Water held underground in the soil or in pores and crevices in rock.

Accounts Receivable

Funds that are due to a company from its customers for products or services that have been provided but remain unpaid.

Sales Revenue

The total income received by a company from its sales of goods or services, before any expenses are subtracted.

Cash Collected

The total amount of cash received by a company during a specific period, including receipts from sales, services, and other sources.