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    Miiii's Avatar
    Miiii Posts: 2, Reputation: 1
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    #1

    Oct 25, 2011, 09:46 AM
    How do you calculate the cash pymt to suppliers for perpetual inventory?
    Hello, I'm trying to figure out how much cash was paid to suppliers in 2009 for merchandise purchased on account. I am not sure what information I need, what I subtract/add, etc to get to the answer. Please help me out?

    Here are the givens:

    * The accounts payable account is used for recording inventory purchases only
    Accounts payable balance 2008: 4,089
    Accounts payable balance 2009: 6,729
    Merchandise Inventory balance 2009: 12,268 (I assume this is the unsold merchandise)
    Purchases of merch. Inventory on account 2009: 25,246 (I assume this is the addt'l purchased 2009)
    Cash payments to suppliers 2009: ?

    More info if needed:
    Cost of goods sold 2009: 26,345
    Merchandise Inventory 2008: 13,367
    All other accounts in 2008: 0
    Miiii's Avatar
    Miiii Posts: 2, Reputation: 1
    New Member
    		  
    #2

    Oct 25, 2011, 10:34 AM
    4,089 + 25,246 - 6,729 = $22,606 cash payments to suppliers in 2009
    ArcSine's Avatar
    ArcSine Posts: 969, Reputation: 106
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    #3

    Oct 26, 2011, 05:53 AM
    You've got it; nice job.
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