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22 January, 13:15

A company's inventory balance at 12/31/16 was $191,600 and $204,000 at 12/31/15. its accounts payable balance at 12/31/16 was $88,000 and $83,600 at 12/31/15, and its cost of goods sold for 2016 was $724,000. the company's total amount of cash payments for merchandise in 2016 equals:

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  1. 22 January, 13:39
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    Company

    Dec. 31. 2016

    Assets

    Cash - $191,600

    Dec. 31. 2015

    Assets

    Cash - $204,000

    Goods sold for 2016 - $724,000

    Liabilities

    Dec. 31.2016

    Accounts Payable - $88,000

    Liabilities

    Dec. 31. 2015

    Accounts payable - $83,600

    In order to find the company's total amount of cash payments for 2016, you find the minus the previous assets with the new assets ...

    Ex. $191,600 - $204,000 = - 12,400

    Then minus your answer with Goods Sold in 2016

    Ex. $724,000 - $12,400 = $711,600

    Then, minus the pervious amount of Accounts payable with the new Accounts Payable

    Ex. $88,000 - $83,600 = $4,400

    New payments for 2016-

    Ex. Add $88,000 + $83,600 = $171,600

    Then, $171,600 - $4,400 = $167,200

    Thus, $167,200 equals the company's total amount of cash payments 2016.
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