Answer: 8,000.

## Explanation To calculate cash paid to suppliers, we need to understand the relationship between purchases, inventory changes, and cash payments: **Formula:** Cash paid to suppliers = Purchases from suppliers - Increase in accounts payable + Decrease in accounts payable However, in this question, we only have: - Purchases from suppliers: $9,000 - Increase in inventory: $1,000 **Step-by-step calculation:** 1. **Cost of Goods Sold (COGS) relationship:** COGS = Beginning Inventory + Purchases - Ending Inventory 2. **Inventory change relationship:** Increase in inventory = Ending Inventory - Beginning Inventory = $1,000 3. **Alternative approach:** When inventory increases by $1,000, it means the company purchased $1,000 more inventory than it sold. Therefore: Cash paid to suppliers = Purchases - Increase in inventory = $9,000 - $1,000 = $8,000 **Why this works:** - If inventory increases by $1,000, the company has $1,000 worth of inventory that hasn't been sold yet - This $1,000 of inventory was purchased but hasn't been expensed as COGS - Therefore, the cash outflow for purchases that actually affected cash flow is $9,000 - $1,000 = $8,000 **Answer:** $8,000 (Option B)

Author: LeetQuiz .