Operating expenses total $75,750; Depreciation expense = $37,200; Prepaid expens

Question

Operating expenses total $75,750; Depreciation expense = $37,200; Prepaid expenses increased by $15,400; Accrued wages decreased by $10,600.

Calculate cash payments for operating expenses.

Cash payments for operating expenses

$ Operating expenses total $75,750; Depreciation expense = $37,200; Prepaid expenses increased by $15,400; Accrued wages decreased by $10,600.

Calculate cash payments for operating expenses.

Cash payments for operating expenses

$ Sales = $650,500; Accounts receivable increased by $27,500.

Calculate cash receipts from sales.

Cash receipts from sales
$

Sales = $650,500; Accounts receivable increased by $27,500. Calculate cash receipts from sales. Cost of goods sold = $430,000; inventory decreased by $75,000; accounts payable decreased by $28,500. Calculate cash payments for purchases. The Income statement shows $12,500 in income taxes. The balance sheet shows an increase in taxes payable of $1,500. Calculate the cash paid for income taxes. Operating expenses total $75,750; Depreciation expense = $37,200; Prepaid expenses increased by $15,400; Accrued wages decreased by $10,600. Calculate cash payments for operating expenses.

Explanation / Answer

Part A) 650,000- 27,500 = 623,000= cash receipts

Part B) 430,000- 75,000+ 28,500 = 383,500 = cash payments

Part C) 12,500- 1,500 = 11,000= cash paid

Part D) 75,750- 37,200 + 15,400+ 10,600 = 64, 550

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