For various reasons including new entrants in the PT space and margin compression from reduced payments from insurance …show more content…
The firm paid off all existing accounts payable to the suppliers
It paid $130,000 on two-day vacation for its most important suppliers.
To announce the newly integrated facility, Buff spent $100,000 contacting Colonial’s customers and letting them know of the additional services Buff offers.
Gross purchases of inventory totaled $11,230,000. Purchase returns were $25,000. The firm was conscientious about taking cash payment discounts and took $120,845 in cash discounts. At year-end the firm had remaining accounts payable of $1,480,000.
Transportation-in costs, all paid in cash, were $130,000 [hint: you can calculate cash paid to suppliers for inventory purchases from this information.]
All sales are on credit. Sold inventory for $18,500,000 at a gross profit