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Answer: 6,500.
The correct answer is **A. 6,500**. **Explanation:** To calculate the cash paid to suppliers, use the formula: \[ \text{Cash paid to suppliers} = \text{Cost of goods sold} + \text{Increase in inventory} - \text{Increase in accounts payable} \] 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.
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An analyst gathers the following information (in millions) about a company's fiscal year:
Based on this data, the cash paid to suppliers (in millions) is:
A
6,500.
B
9,000.
C
11,500.