Reference no: EM132608489

Question - Very Good Building Company had the following accounts in 2018 and 2019:

Income Statement Accounts

Account Name 12/31/19

Net Income $275,000

Sales Revenue 700,000

Depreciation Expense 25,000

Loss on sale of equipment 20,000

Cost of Goods Sold 350,000

Other operating expenses 5,000

Interest expense 15,000

Salary expense 10,000

Balance Sheet Accounts

Account Name 12/31/18 12/31/19

Inventory $10,000 60,000

Accounts Payable 15,000 10,000

Accounts Receivable 30,000 35,000

Salaries Payable 2,000 3,000

Interest Payable 10,000 2,000

Property Plant and Equipment 500,000 350,000

Accumulated Depreciation 150,000 100,000

Notes Payable 1,500,000 1,750,000

Land 500,000 650,000

Common Stock 40,000 50,000

Additional Paid-In Capital - C/S 200,000 300,000

Retained Earnings 250,000 450,000

How much cash did it pay to suppliers in 2019?

a. $395,000

b. $405,000

c. $300,000

d. $400,000