Question 21 Not yet Presented below is the income statement

Question 21 Not yet Presented below is the income statement of Nicklaus Inc: $475,000 Points out of 3.00 F Flag question Cost of goods sold Gross profit Operating expenses Income before income taxes ncome taxes Net Income 89.000 106,000 2,000 364,000 In addition, the following infomnation relatedto net changes in working capital accourts is presented Increase Decrease $15,000 Cash Trade accounts receabie (net) Inventories Salaries payable (operating) Trade accourts payable ,400 $16,200 11,000 6000 The company also indicates that depreciation expense for the year was $14,200 Cash paid to suppliers is: select one D a $252,800 b $274,800 c. $307.200 d $280,800 O e $285.200

Solution

Calculate cash paid to suppliers :

Cash paid to suppliers = Cost of goods sold - decrease in inventory - Increase account payable

= 280000-16200-11000

Cash paid to suppliers = 252800

So answer is a) $252800