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Analyzing changes in inventory and accounts payable
EkaPhone, a Swedish firm specializing in communication networks, reported a balance in Inventories of SEK21,470 million at the beginning of Year 7 and SEK22,475 million at the end of Year 7. It also reported a balance in Trade (Accounts) Payable of SEK18,183 million at the beginning of Year 7 and SEK17,427 million at the end of Year 7. During Year 7, EkaPhone reported SEK114,059 million in Cost of Sales.
Problem 1: Compute the amount of cash paid to suppliers of inventory during Year 7 for purchases made on account. Assume that all of EkaPhone's inventory purchases are made on account. EkaPhone applies IFRS, and reports its results in millions of Swedish kronor (SEK).
Financial Statement Analysis and Preparation
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