Final answer:
The cash payments to suppliers for Blackmon Company in 2019 are calculated to be $1,533,310, using the direct method and adjusting for changes in inventory and accounts payable.
Step-by-step explanation:
To compute the amount of cash payments to suppliers using the direct method, we have to adjust the cost of goods sold figure from the income statement to reflect the changes in inventory and accounts payable. The formula to calculate the cash payments to suppliers is:
Cash Payments to Suppliers = Cost of Goods Sold + Increase in Inventory - Decrease in Accounts Payable
We already have the following numbers from the information provided:
Cost of Goods Sold (COGS): $1,525,000
Increase in Inventory: $65,100
Decrease in Accounts Payable: $56,790
Now, we perform the calculation:
Cash Payments to Suppliers = $1,525,000 + $65,100 - $56,790 = $1,533,310
Therefore, the cash payments to suppliers for Blackmon Company during the year 2019 amount to $1,533,310.