Selected balance sheet account balances are: VIZQUEL COMPANY December 31 2002 20
ID: 2431164 • Letter: S
Question
Selected balance sheet account balances are: VIZQUEL COMPANY
December 31
2002 2001
Cash $ 200,000 $ 300,000
Accounts Payable 60,000 80,000
Accounts Receivable 180,000 140,000
Salaries Payable 12,000 6,000
Land 120,000 140,000
Merchandise Inventory 100,000 160,000
Prepaid Rent 50,000 45,000
Unearned Consulting Revenue 70,000 50,000
Income statement items for the year are:
Sales $800,000
Consulting Fees $200,000
Cost of Goods Sold 400,000
Salary Expense 90,000
Depreciation Expense 40,000
Rent Expense 100,000
Cash collections from customers during 2002 amounted to:
Cash received from consulting services during 2002 was:
Total cash collected amounted to:
Cash payments to suppliers for merchandise inventory during 2002 amounted to:
Cash payments for salary during 2002 amounted to:
Cash payments for rent during 2002 amounted to:
Cash payments for depreciation during 2002 amounted to:
Total cash paid for operating activities amounted to:
Cash from operating activities during 2002 is:
Net income for Vizquel Company
Explanation / Answer
Answer a.
Cash Collections from Customers = Accounts Receivable, December 31, 2001 + Sales - Accounts Receivable, December 31, 2002
Cash Collections from Customers = $140,000 + $800,000 - $180,000
Cash Collections from Customers = $760,000
Answer b.
Cash Received from Consulting Services = Unearned Consulting Revenue, December 31, 2002 + Consulting Fees - Unearned Consulting Revenue, December 31, 2001
Cash Received from Consulting Services = $70,000+ $200,000 - $50,000
Cash Received from Consulting Services = $220,000
Answer c.
Total Cash Collected = Cash Collections from Customers + Cash Received from Consulting Services
Total Cash Collected = $760,000 + $220,000
Total Cash Collected = $980,000
Answer d.
Cash Payments to Suppliers = Accounts Payable, December 31, 2001 + Cost of Goods Sold - Accounts Payable, December 31, 2002
Cash Payments to Suppliers = $80,000 + $400,000 - $60,000
Cash Payments to Suppliers = $420,000
Answer e.
Cash Payments for Salary = Salaries Payable, December 31, 2001 + Salary Expense - Salaries Payable, December 31, 2002
Cash Payments for Salary = $6,000 + $90,000 - $12,000
Cash Payments for Salary = $84,000
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