Question

Bramble Corporation had January 1 and December 31 balances as follows. 1/1/17 12/31/17 Inventory $112,000 $133,000 Accounts payable 55,000 64,000 For 2017, cost of goods sold was $592,000. Compute Bramble’s 2017 cash payments to suppliers.

Answer 1

$604,000

Step-by-step explanation:

Given that,

Opening Closing

Inventory $112,000 $133,000

Accounts payable $55,000 $64,000

Cost of goods sold = $592,000

Cost of goods sold = Opening stock + Purchases - Closing stock

Purchases = Cost of goods sold - Opening stock + Closing stock

= $592,000 - $112,000 + $133,000

= $613,000

Bramble’s 2017 cash payments to suppliers:

= Opening accounts payable + Purchases - Closing accounts payable

= $55,000 + $613,000 - $64,000

= $604,000