1. Cash payments for salary during 2002 amounted to: 2. Cash payments for rent d

Question

1. Cash payments for salary during 2002 amounted to:

2. Cash payments for rent during 2002 amounted to:

3. Cash payments for deprication amounted to:

4. Total cash paid for operating activities amounted to:

5. Cash from operating activities during 2002 is:

6. Net income for Viquel Company for 2002 is:

Selected balance sheet account balances are: VIZQUEL COMPANY December 31 S 300,000 80,000 140,000 6,000 140,000 160,000 45,000 50,000 Accounts Payable Accounts Receivable 60,000 180,000 12,000 120,000 100,000 50,000 70,000 Salaries Payable Prepaid Rent Uncarned Consulting Revenue Income statement items for the year are: $800,000 $200,000 Consulting Fees Cost of Goods Sold Salary Expense Depreciation Expense Rent Expense 90,000 40,000

Explanation / Answer

1. Cash payments for salary during 2002 amounted to: $6000 + $90000 - $12000 = $84000

2. Cash payments for rent during 2002 amounted to: $100000 + $50000 - $45000 = $105000

3. Cash payments for depreciation amounted to: $0

Depreciation is a non-cash expense hence cash payments are nil.

4. Total cash paid for operating activities during 2002 is: $549000

5. Cash from operating activities during 2002 is: $431000

6. Net income for Viquel Company for 2002 is: $800000 + $200000 - $400000 - $90000 - $40000 - $100000 = $370000

Working:

Cash receipts from customers 980000 Cash paid for merchandise 360000 Cash paid for salaries 84000 Cash paid for rent 105000 Total cash paid for operating activities 549000 Cash from operating activities 431000

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