Chapter 23, Problem 7BE

To determine

Cash payments to suppliers: It pertains to payments made to suppliers for the purchase of goods and raw materials. It is derived by adding any increase in current asset and decrease in current liability to cost of goods sold and deducting any decrease in current asset and increase in current liability from cost of goods sold.

Given information: Balances as on January 1, 2017 and December 31, 2017 are as follows.

	1/1/17	12/31/17
Inventory	$95,000	$113,000
Accounts payable	61,000	69,000

Cost of goods sold was $500,000 for 2017.

To determine cash payments made to suppliers for 2017.