Cash purchases of Lowman Company for 2020 were 900,000. During the year purchase returns of 150,000 were made and discounts on purchases of 200,000 were granted. The income statement for the year reported gross purchases of 5,000,000. The balance sheet reported a decrease in accounts payable of 250,000. How much cash was paid on accounts payable? a. P4,400,000 c. P3,500,000 b. P4,900,000 d. P4,000,000
Cash purchases of Lowman Company for 2020 were 900,000. During the year purchase returns of 150,000 were made and discounts on purchases of 200,000 were granted. The income statement for the year reported gross purchases of 5,000,000. The balance sheet reported a decrease in accounts payable of 250,000. How much cash was paid on accounts payable? a. P4,400,000 c. P3,500,000 b. P4,900,000 d. P4,000,000
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter11: The Statement Of Cash Flows
Section: Chapter Questions
Problem 24CE
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Cash purchases of Lowman Company for 2020 were 900,000. During the year purchase returns of 150,000 were made and discounts on purchases of 200,000 were granted.
The income statement for the year reported gross purchases of 5,000,000. The balance sheet reported a decrease in accounts payable of 250,000.
How much cash was paid on accounts payable?
a. P4,400,000 c. P3,500,000
b. P4,900,000 d. P4,000,000
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