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Relevant account balances for Martinez Corporation are:   12/31/17   1/01/17 Accounts receivable $18,000 $14,000 Inventory 24,000 26,000 Prepaid insurance 1,500 2,100 Accounts payable 25,000 26,000 Income information for 2017_______ _________ _________ Revenue   $120,000 Cost of goods sold $60,000   Insurance expense 6,000   Operating expenses 18,000   Depreciation      10,000    94,000 Net income   $ 26,000             How much cash was paid to suppliers for inventory during 2017?       $2,000     $59,000     $63,000     $61,000     None of these choices is correct.

Relevant account balances for Martinez Corporation are:   12/31/17   1/01/17 Accounts receivable $18,000 $14,000 Inventory 24,000 26,000 Prepaid insurance 1,500 2,100 Accounts payable 25,000 26,000 Income information for 2017_______ _________ _________ Revenue   $120,000 Cost of goods sold $60,000   Insurance expense 6,000   Operating expenses 18,000   Depreciation      10,000    94,000 Net income   $ 26,000             How much cash was paid to suppliers for inventory during 2017?       $2,000     $59,000     $63,000     $61,000     None of these choices is correct.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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QUESTION 7

  1. Relevant account balances for Martinez Corporation are:

     

    12/31/17

      1/01/17

    Accounts receivable

    $18,000

    $14,000

    Inventory

    24,000

    26,000

    Prepaid insurance

    1,500

    2,100

    Accounts payable

    25,000

    26,000

    Income information for 2017_______

    _________

    _________

    Revenue

     

    $120,000

    Cost of goods sold

    $60,000

     

    Insurance expense

    6,000

     

    Operating expenses

    18,000

     

    Depreciation

         10,000

       94,000

    Net income

     

    $ 26,000

                How much cash was paid to suppliers for inventory during 2017?

     

       

    $2,000
       

    $59,000
       

    $63,000
       

    $61,000
       

    None of these choices is correct.
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