Cash Payments for Merchandise-Direct MethodCost of merchandise sold reported on the Income statement was $760,400. The accounts payable balance decreased $56,100, and the inventory balanceIncreased by $41,900 over the year.Determine the amount of cash pald for merchandise.12:25

Formula to compute cash paid for merchandise using direct method.

Answered: Cash Payments for Merchandise-Direct…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Cash Payments for Merchandise-Direct Method Cost of merchandise sold reported on the Income statement was $760,400. The accounts payable balance decreased $56,100, and the inventory balance Increased by $41,900 over the year. Determine the amount of cash pald for merchandise. 12:25