QS 12-14B Direct: Computing cash received from customers LO P5 1. How much cash

ID: 2329258 • Letter: Q

Question

QS 12-14B Direct: Computing cash received from customers LO P5

1. How much cash is received from sales to customers for year 2017?

2. What is the net increase or decrease in cash for year 2017?

CRUZ, INC.
Comparative Balance Sheets
December 31, 2017 2017 2016 Assets Cash $ 94,800 $ 24,000 Accounts receivable, net 41,000 51,000 Inventory 85,800 95,800 Prepaid expenses 5,400 4,200 Total current assets 227,000 175,000 Furniture 109,000 119,000 Accum. depreciation—Furniture (17,000 ) (9,000 ) Total assets $ 319,000 $ 285,000 Liabilities and Equity Accounts payable $ 15,000 $ 21,000 Wages payable 9,000 5,000 Income taxes payable 1,400 2,600 Total current liabilities 25,400 28,600 Notes payable (long-term) 29,000 69,000 Total liabilities 54,400 97,600 Equity Common stock, $5 par value 229,000 179,000 Retained earnings 35,600 8,400 Total liabilities and equity $ 319,000 $ 285,000

Explanation / Answer

Answers

Beginning Accounts receivables balance (2016)

$ 51,000.00

Sales in 2017

$ 448,000.00

C = A + B

Total

$ 499,000.00

Ending Accounts receivables balance (2017)

$ 41,000.00

E = C - D

Cash received from customer in 2017

$ 458,000.00

Answer = $ 458,000

Ending Cash Balance (2017)

$ 94,800.00

Beginning Cash Balance (2016)

$ 24,000.00

C = A - B

Increase in Cash Balance in 2017

$ 70,800.00

Answer = Net Increase in Cash Balance for the year 2017 = $ 70,800.