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.