538 E0 c 700 1000 1350 2100 Invertony Refer to the Refer to

5.38 E0 c $ 700 $1,000 1,350 2,100 Invertony Refer to the Refer to the

Solution

Cash paid for Inventory Purchases= Total Inventory purchased during the year - Credit puchase

=(2500-2100)-(1350-1200)

=400-150

=250

Cash paid for operating expenses=Closing prepaid balance-Beginning balances

=1000-700=300