1. Based on the information below and considering that this company did not pay any money to its suppliers during the year, what is the company's cost of goods sold for 2015? Assume that the only source of Accounts Payable is the purchase of inventory on credit.

1/1/2015 12/31/2015

Inventory $57,380 $68,540

Accounts payable $78,000 $189,160

Select one:

a. $88,840

b. The answer cannot be determined with the information provided

c. $11,160

d. $100,000

2. Based on the information below and considering that this company paid $100,000 in cash to its suppliers during the year, what is the company's cost of goods sold for 2015? Assume that the only source of Accounts Payable is the purchase of inventory on credit.

1/1/2015 12/31/2015

Inventory $122,400 $123,500

Accounts payable $54,000 $0

Select one:

a. $45,800

b. None of these

c. $1,100

d. $54,200