Corporation reported an increase in inventory of 75000 The o

Corporation reported an increase in inventory of $75,000. The oost of goods sold for the year was $200,000. There was also a $5000 decrease in accounts payable from the beginning of the year to the end of the year. What is Newton\'s cash payment to suppliers for inventory? O A. $270,000 O B. $280,000 Oc. S275.000 O D. $205,000

Solution

Correct answer is A

Cost of goods sold	200000
Increase in inventory	75000
Increase in accounts payable	-5000
Cash paid for merchandise inventory		270000