Additional information: Accounts payable pertain to the purchase of inventory. P

Question

Additional information:

Accounts payable pertain to the purchase of inventory.

Plant assets were sold for $40,000. The cost of the plant assets was $40,000.

All dividends are cash.

Cash received/collected from customers is:

Purchases for the year is:

Cash paid to suppliers is:

Depreciation expense is:

Cash paid for operating expenses is:

Cash paid for interest is:

Cash paid for income taxes is:

Cash provided by/(used in)* operating activities is:

Cash provided by/(used in)* investing activities is:

Cash paid for dividends is:

Cash provided by/(used in)* financing activities is:

If Rent Expense for the period was $20,000, the Cash paid for Prepaid Rent is:

If your answer is cash “used in”, you must indicate this by writing your answer in parenthesis. For example, ($10,000). If your answer is cash “provided by”, you must write your answer without parentheses.

Explanation / Answer

Cash received / collected from customers = Sales + Beginning Accounts Receivable - Ending Accounts Receivable = $ 800,000 + $ 110,000 - $ 160,000 = $ 750,000.

Purchases for the year = Cost of Goods Sold + Ending Inventories - Beginning Inventories =

$ 480,000 + $ 80,000 - $ 50,000 = $ 510,000.

Cash paid to suppliers = Beginning Accounts Payable + Purchases - Ending Accounts Payable = $ 40,000 + $ 510,000 - $ 50,000 = $ 500,000.

Depreciation expense = Ending Accumulated Depreciation - ( Beginning Accumulated Depreciation - Accumulated Depreciation on Asset Sold) = $ 65,000 - $ ( 60,000 - 5,000) =

$ 10,000.

Cash paid for operating expenss = Cash operating expenses + Ending Prepaid Rent - Beginning Prepaid Rent = $ 110,000 + $ 15,000 - $ 10,000 = $ 115,000.

Cash paid for interest = Interest expenses + beginning interest payable - ending interest payable = $ 20,000 + $ 5,000 - $ 20,000 = $ 5,000.

Cash paid for income taxes = Income tax expense + beginning income tax payable - ending income tax payable = $ 25,000 + $ 10,000 - $ 5,000 = $ 30,000.

Cash provided by ( used in ) operating activities = $ 750,000 - $ 500,000 - $ 115,000 - $ 5,000 - $ 30,000 = $ 100,000.

Cash provided by ( used in ) in investing activities = $ 40,000 - $ 25,000 = $ 15,000.

Cash paid for dividends = Beginning Retained Earnings + Net Income - Ending Retained Earnings = $ 150,000 = $ 160,000 - $ 160,000 = $ 150,000.

Cash provided ( used in ) financing activities = proceeds from issuance of common stock - repayment of note payable - cash dividends = $ 55,000 - $ 10,000 - $ 150,000 = $ ( 105,000)

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