Calculating credit purchases using the payables formula

Steps:

• Start with the standard equation: Opening payables + Purchases - Returns outwards = Payments to suppliers + Closing payables.
• Rearrange to solve for Purchases: Purchases = Payments + Closing payables - Opening payables + Returns outwards.
• Plug in known values: Payments = 158,000; Opening payables = 18,000; Returns outwards = 2,000.
• Closing payables are not provided (trade receivables of 14,000 are irrelevant to purchases).

Why C is correct:

• Not applicable; insufficient data prevents confirming any option.

Why the others are wrong:

• A, B, D: All require closing payables, which is missing.

Not enough information. Final answer: Not enough information.