Partial Balance Sheets and Additional Information Are Listed Below for Ensign

question 26

Essay

Partial balance sheets and additional information are listed below for Ensign Company. Ensign Company
Partial Balance Sheets
as of December 31
$\begin{array}{|l|r|r|}\hline \text { Assets } & 2018 & 2017 \\\hline \text { Cash } & \$ 20,000 & \$ 40,000 \\\hline \text { Accounts receivable } & 90,000 & 60,000 \\\hline \text { Inventory } & 20,000 & 25,000 \\\hline \mathbf { Liabilities } & & \\\hline \text { Accounts payable } & \$ 72,000 & \$ 58,000\\\hline\end{array}$ Additional information for 2018:
Net income was $170,000.
Depreciation expense was $30,000.
Sales totaled $400,000.
Cost of goods sold totaled $145,000.
Required:
Prepare the summary entry for the amount of cash paid to merchandise suppliers during 2018.

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Definitions:

Capital Gains Yield

The percentage change in the market price of an asset over a period, excluding dividends.

Shares

Shares represent units of ownership interest in a corporation or financial asset, providing a proportionate claim on its assets and profits.

Geometric Return

The average rate of return per period on an investment, calculated by taking the nth root of the total compounded return, where n is the number of periods.

Investment

The method of apportioning capital with the expectation of financial returns or earnings.