Asked by
Esteban Pedraza
on Dec 16, 2024Verified
During the year, Cost of Goods Sold was $65,000, Inventory decreased by $4,000, and Accounts Payable decreased by $2,000.What were the cash payments for merchandise during the year?
A) $63,000
B) $65,000
C) $67,000
D) $71,000
Accounts Payable
Money owed by a company to its creditors for goods or services that have been delivered but not yet paid for.
Inventory
Refers to the goods and materials a business holds for the ultimate goal of resale.
Cost of Goods Sold
The direct costs attributable to the production of the goods sold by a company, including materials and labor costs.
- Acknowledge the impact that variations in working capital have on the flow of cash.
Verified Answer
VA
Learning Objectives
- Acknowledge the impact that variations in working capital have on the flow of cash.