The correct answer is A. 6,500.
Explanation:
To calculate the cash paid to suppliers, use the formula:
Cash paid to suppliers=Cost of goods sold+Increase in inventory−Increase in accounts payable
Substituting the given values:
6,000+3,000−2,500=6,500
- Option B (9,000) is incorrect because it excludes the increase in accounts payable, effectively calculating purchases from suppliers instead of cash paid to them.
- Option C (11,500) is incorrect because it adds, rather than subtracts, the increase in accounts payable, leading to an overstatement of cash paid.