Answer:
d. $704,000
Explanation:
The computation of the cash payment for merchandise is shown below:
= Opening balance of accounts payable + purchase made - closing balance of accounts payable
where,
Purchase = Cost of goods sold + closing balance of inventory - opening balance of inventory
= $720,000 + $188,000 - $200,000
= $708,000
The other items values would remain the same
Now put these values to the above formula
So, the value would equal to
= $80,000 + $708,000 - $84,000
= $704,000
