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    Snowmass Construction Company: Cash Paid to Suppliers

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    Cost of goods sold for Snowmass Construction Company during 20X1 was $410,000. Beginning inventory was $95,000 and ending inventory was $120,000. Beginning trade accounts payable were $24,000, and ending trade accounts payable were $51,000. What amount of cash did Snowmass pay to suppliers?

    © BrainMass Inc. brainmass.com June 4, 2020, 12:10 am ad1c9bdddf
    https://brainmass.com/business/accounting/snowmass-construction-company-cash-paid-to-suppliers-323562

    Solution Preview

    First, we compute the amount of purchases using the standard cost of goods sold calculation:

    Beginning Inventory $95,000
    Add Purchases ?
    Goods ...

    Solution Summary

    The solution carefully explains the terms and shows the formulas and computations to arrive at the amount of cash paid to suppliers.

    $2.19

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