Problem:
A company's Inventory balance at 12/31/13 was $188,900 and $201,000 at 12/31/12. Its Accounts Payable balance at 12/31/13 was $85,000 and $80,900 at 12/31/12, and its cost of goods sold for 2013 was $721,000.
Required:
The company's total amount of cash payments for merchandise in 2013 equals:
- $704,800.
- $729,000.
- $713,000.
- $721,000.
- $737,200.
Note: Be sure to show how you arrived at your answer.