Please explain answer 9 Cost of goods sold during the year i

Please explain answer

9. Cost of goods sold during the year is S600,000. Related information is as follows: December 31 Inventory Accounts payable $75,000 $16,000 JanuaryI $80,000 $12,000 The amount of cash paid for inventory during the year would be A) $609,000. B) $601,000. C) $594,000. D) S591,000.

Solution

Cash paid for Inventory Cost of Good sold-Decrease in Inventory-Increase in Accounts payable 600000-(80000-75000)-(16000-12000) 591000 Ans option D is correct $591000 If any doubt please comment. If satisfied you can rate