FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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QUESTION 7
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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.
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