The cash paid for inventory. soulation: Calculate the purchased inventory. Cost of goods sold is $314,000. Inventory at the end of the year is $85,800. Inventory at the beginning of the year is $95,800. Calculation: The table below shows the purchased inventory. Particulars Amount ($) Cost of goods sold 314,000 Add: Ending inventory 85,800 Less: Opening inventory 95,800 Purchases 304,000 Table 1 The table below shows the cash paid for inventory. Particulars Amount ($) Accounts payable as on 2014 21,000 Add: Purchase 304,000 Less: Accounts payable 15,000 Cash paid to acquire inventory as on 2015 310,000 Table 2 Conclusion: Hence, the cash paid for inventory is $310,000.

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Chapter 12, Problem 15QS

1.

To determine

The cash paid for inventory.

soulation:

Calculate the purchased inventory.

Cost of goods sold is $314,000.

Inventory at the end of the year is $85,800.

Inventory at the beginning of the year is $95,800.

Calculation:

The table below shows the purchased inventory.

Particulars Amount ($)

Cost of goods sold 314,000

Add: Ending inventory 85,800

Less: Opening inventory 95,800

Purchases 304,000

Table 1

The table below shows the cash paid for inventory.

Particulars Amount ($)

Accounts payable as on 2014 21,000

Add: Purchase 304,000

Less: Accounts payable 15,000

Cash paid to acquire inventory as on 2015 310,000

Table 2

Conclusion:

Hence, the cash paid for inventory is $310,000.

2.

To determine

The cash paid for other expenses.

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