Financial Reporting and Analysis Q156
156An analyst collects the following information for Baking Butter Corporation:
| Net revenue | $200,000 |
| Gross profit | $50,000 |
| Increase in inventory | $8,000 |
| Increase in accounts payable | $12,000 |
The cash paid to its suppliers is closest to:
- Option : A
- Explanation : Cash paid to suppliers = Cost of goods sold + increase in inventory - increase in payables. Cash paid to suppliers = 200,000 - 50,000 + 8,000 - 12,000 = $146,000.
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