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Calculation of payment made to vendors.
The following balance sheets are provided for Victor Foods
Cash and cash equivalents ..............................
$170,000
$120,000
Accounts receivable ...................................
80,000
65,000
Inventory ................................
140,000
130,000
Plant and equipment (net) ............................
Total assets ........................................
$520,000
$395,000
Accounts payable (for merchandise) ...............
$ 65,000
$ 35,000
Wages payable ............................................
120,000
110,000
Long-term liabilities .....................................
95,000
70,000
Common stock ..........................................
100,000
Retained earnings ............................................
Total liabilities and owner's equity ..................
Selected information from Victor Food's current year income statement:
Sales ...........................................................................
$1,650,000
Cost of goods sold ...................................................
840,000
Wages expense .........................................................
260,000
Compute the following (and show your work to earn partial credit in the event your responses are incorrect):
Cash payments for merchandise during the year ..................... $______________
Indicate the best answer to each question in the space provided.
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