Reference no: EM132725018

During the financial year, Cottontree Limited had a cost of sales amounting to $130 000. Opening and ending balances of related accounts were:

                                       Opening balance              Closing balance

Inventories                   $34 000                               $42 000

Accounts Payable            $51 000                           $56 000

A discount of $4 000 for prompt payment was received.

Problem 1: What would be the amount of cash paid for goods purchased during the year?

Select one:

Option 1: None of these

Option 2: $143 000

Option 3: $130 000

Option 4: $129 000

Option 5: $135 000