contestada

A company purchases its inventory from suppliers on account. During the year, its inventory account increased by $16 million and its accounts payable to suppliers decreased by $4 million. If cost of goods sold was $500 million, its cash outflows to inventory suppliers totaled:

Respuesta :

Zviko

Answer:

cash outflows to inventory suppliers totaled:  $512 million

Explanation:

Calculation of Cash flows to inventory suppliers :

Cost of goods sold                                $500 million

Less decrease in Accounts payable     ($4 million)

Add Increase in Inventory                      $16 million

Cash outflows to inventory suppliers  $512 million

Cash outflows to inventory suppliers is $520 million

Given that;

Inventory account increased = $16 million

Suppliers decreased = $4 million

Cost of Goods Sold = $500 million

Find:

Cash outflows to inventory suppliers

Computation:

Inventory Purchased = Inventory account increased + Cost of Goods Sold

Inventory Purchased = $16 million + $500 million

Inventory Purchased = $516 million

Cash outflows to inventory suppliers = Inventory Purchased + Suppliers decreased

Cash outflows to inventory suppliers = $516 million + $4 million

Cash outflows to inventory suppliers = $520 million

Learn more:

https://brainly.com/question/13187530?referrer=searchResults

Otras preguntas