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14 December, 05:38

The cost of merchandise sold during the year was $45,000. Merchandise inventories were $13,500 and $10,500 at the beginning and end of the year, respectively. Accounts payable were $7,000 and $5,000 at the beginning and end of the year, respectively. Using the direct method of reporting cash flows from operating activities, cash payments for merchandise total

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  1. 14 December, 05:44
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    cash payments for merchandise total is $44,000

    Explanation:

    purchase for the year

    Beginning Investment + Purchases - Ending Investment = Cost of Merchandise sold

    13,500 + Purchases - 10,500 = 45,000

    Purchases = 42,000

    Therefore, the total cash paid for merchandise

    Beg. A/P + Purchases - End. A/P = Cash Paid

    7,000 + 42,000 - 5,000 = $44,000
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Home » Business » The cost of merchandise sold during the year was $45,000. Merchandise inventories were $13,500 and $10,500 at the beginning and end of the year, respectively. Accounts payable were $7,000 and $5,000 at the beginning and end of the year, respectively.
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