Final answer:
Hainzel Corp. paid $190,000 to suppliers. This is calculated by adding the decrease in inventory ($10,000) to the cost of goods sold ($200,000) and then subtracting the decrease in accounts payable ($20,000).
Step-by-step explanation:
The question revolves around calculating the cash paid to suppliers by Hainzel Corp. during the current year. When reviewing the company's transactions, we consider the cost of goods sold, changes in accounts payable, and changes in inventory to determine cash flow. Hainzel Corp. sold inventory costing $200,000 for $500,000, which is the cost of goods sold (COGS). The balance of accounts payable decreased by $20,000, indicating that some of the debt owed to suppliers was paid off. The decrease in the inventory account by $10,000 suggests that this amount of inventory was used to fulfill sales. Combining these elements, we can deduce that the cash paid to suppliers for inventory was COGS plus the decrease in inventory, minus the decrease in accounts payable, which equals $200,000 + $10,000 - $20,000, giving us $190,000.
In reference to the self-check question provided, a firm with sales revenue of $1 million that spent $600,000 on labor, $150,000 on capital, and $200,000 on materials would have an accounting profit of $50,000, calculated by subtracting explicit costs from total revenues.