**Question: Calculating Cash Payment to Suppliers for Inventory**Newton Corporation reported an increase in inventory of $75,000. The cost of goods sold for the year was $210,000. There was also a $9,000 decrease in accounts payable from the beginning of the year to the end of the year. What is Newton’s cash payment to suppliers for inventory?**Options:**- A. $294,000- B. $276,000- C. $325,000- D. $219,000**Explanation of the Question:**This problem is asking you to calculate the cash payment made to suppliers for inventory by Newton Corporation. You need to account for:1. The cost of goods sold (COGS)2. The change in inventory3. The change in accounts payableTo find the cash payment to suppliers, use the following formula:\[ \text{Cash Payment to Suppliers} = \text{Cost of Goods Sold} + \text{Increase in Inventory} - \text{Decrease in Accounts Payable} \]Based on the provided data:- Increase in Inventory: $75,000- Cost of Goods Sold: $210,000- Decrease in Accounts Payable: $9,000 Substitute these values into the formula:\[ \text{Cash Payment to Suppliers} = \$210,000 + \$75,000 - \$9,000 \]\[ \text{Cash Payment to Suppliers} = \$285,000 - \$9,000 \]\[ \text{Cash Payment to Suppliers} = \$276,000 \]Therefore, the correct answer is option B: $276,000.

Ledger Accounts are useful for calculating the missing values.Ledger Accounts are easy to understand…

Answered: the year to the end of the year. What…

the year to the end of the year. What is Newton's cash payment to suppliers for inventory? Ritory of $75,000. The cost of goods sold for OA $294.000 B. $276.000 OC. $285,000 OD. $219,000

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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