Question

Carson Company has the following data: Cost of Goods Sold $116,000 Beginning Merchandise Inventory 55,000 Ending Merchandise Inventory 45,000 Beginning Accounts Payable 51,000 Ending Accounts Payable 31,000 What is cash paid for merchandise

Answer 1

Cash paid by Carson Company for merchandise inventory is $126,000

Explanation:

Cash paid for merchandise inventory = Cost of Goods Sold - Beginning Merchandise Inventory + Ending Merchandise Inventory + Beginning Accounts Payable - Ending Accounts Payable.  

• Carson Company Cost of Goods Sold = $116,000
• Carson Company Beginning Merchandise Inventory = $55,000
• Carson Company Ending Merchandise Inventory = $45,000  
• Carson Company Beginning Accounts Payable = $51,000
• Carson Company Ending Accounts Payable $31,000
• Cash paid for merchandise inventory = $116,000 - $55,000 + $45,000 + $51,000 - $31,000
• Cash paid for merchandise inventory = $126,000

Hence, Carson Company cash paid for merchandise inventory = $126,000