# Question & Answer: Cash Paid for Merchandise Purchases The cost of merchandise sold for Kohl's Corporation for a recent year was \$11, 625 millio…..

Cash Paid for Merchandise Purchases The cost of merchandise sold for Kohl’s Corporation for a recent year was \$11, 625 million. The balance sheet showed the following current account balances (in millions): Determine the amount of cash payments for merchandise. \$46, 874 million Consider the affect that the increase or decrease in merchandise inventory and accounts payable would have on the cash-value.

Goods Purchased during the year = Cost of Goods Sold + Ending Inventory – Beginning Inventory

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Question & Answer: Cash Paid for Merchandise Purchases The cost of merchandise sold for Kohl's Corporation for a recent year was \$11, 625 millio…..
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= (\$ 11,625 + \$ 3,199 – \$ 3,036) Millions

= \$ 11,788 Millions

The amount of cash payment made=

= Beginning Accounts Payable + Purchases – Closing Accounts Payable

= \$ ( 1,138 + 11,788 – 1,233) Millions

= \$ 11,693

Hence the correct answer is \$ 11,693