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Hello students, here is a question.
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A company inventory balance at the end of an year was $18 ,800 and $212 ,000 at the beginning of an year.
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Its account payable balance at the end of a year was $96 ,000 and $90 ,800 at the beginning of an year.
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Its cost of goods sold for the year was $732 ,000.
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The company total amount of cash payment for merchandise inventory during the year is $1 ,000.
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We have 5 options given here.
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We have to choose the right option for this.
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Let us start solving the problem.
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In real, some money that the firm company has no hand in reference as the cash it includes in a current asset on the balance sheet, which suggests that it will need it within next 12 months, it is typically kept in the bank account.
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The business can raise additional funds from the owner or sell inventory to create cash.
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This can also sell the asset...