CASH FLow QUESTION SHOw WORK S Points Each increa the year was S600,000. a Compa
ID: 2593680 • Letter: C
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CASH FLow QUESTION SHOw WORK S Points Each increa the year was S600,000. a Company reports a 560,000 increase in inventory and a s20.0 se in accounts payable during the year. Cost of Goods Sold for The eash payments made t 2. Wa rren, Inc. had cash sales of $1,000,000 and credit sales of $2,000,000. The accounts receivable balance increased S40,000 during the year. How much cash did Warren receive from its customers during the year? balance was S22,400. The Rent Earned for the year was $117,400. How much cash was received for rent? 3. The beginning balance of Unearned Rent was S16,200 and the ending 4. If wages expense is S360,000 and the beginning and ending Wages Payable balances are $40,000 and S60,000, respectively, cash paid to employees for wages is: 5. The beginning balance of Prepaid Interest was $7,200 and the ending balance was $10,400. The Interest Expense account for the year was S34,400. How much cash was paid for interest? EXTRA CREDIT - What was the most important acounting concept and explain the WHY tuafhinu dae, Can go hale ?Explanation / Answer
1) Cash paid to suppliers:
2) Cash received from Warren during the year = cash sales + cash received for credit sales
Cash received for credit sales = credit sales - increase in accounts receivables
= 20,00,000 - 40,000
= $19,60,000
Cash received from Warren during the year = $10,00,000 + $19,60,000
= $29,60,000
3) Cash received for rent = rent earned during the year -beginning balance of unearned rent + ending unearned rent
= 117400 - 16200 +22400
= $1,23,600
4) Cash paid to employees for wages = opening wages payable + wages expense - ending wages payable
= 40000 + 360000 - 60000
= $3,40,000
5) cash paid for interest = interest expense for the year - opening prepaid interest + ending prepaid interest
= 34400-7200+10400
= $37,600
$ Cost of goods sold 6,00,000 Add: increase in inventory 60,000 Purchases 6,60,000 Less: increase in receivables 20,000 Cash paid to suppliers 6,40,000Related Questions
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