Laser Solutions' Inventory Decreases During the Year by $8 Million

question 141

Essay

Laser Solutions' inventory decreases during the year by $8 million and its accounts payable to suppliers increases by $6 million during the same period.What is the amount of cash paid to suppliers of merchandise during the reporting period if its cost of goods sold is $81 million?

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Definitions:

Marginal Revenue

The change in total revenue from an additional unit sold.

Marginal Cost

The cost of producing one additional unit of a good or service, important in decision-making processes about production levels.

Product of Labor

The goods or services generated as a result of work or employment, often measured to evaluate productivity.

Profit Maximization

The strategy a business uses to ascertain the pricing and amount of production that maximizes profitability.