During 2017, Schubert Inc. earned revenues of $19 million from the sale of its products. Schubert ended the year with net income of $4 million. Schubert collected cash of $20 million from customers.
Answer these questions about Schubert's operating results, financial position, and cash flows during 2017:
1. How much were Schubert's total expenses? Show your work.
2. Identify all the items that Schubert will report on its income statement for 2017. Show each amount.
3. Schubert began 2017 with receivables of $6 million. All sales are on account. What was Schubert's receivables balance at the end of 2017? Identify the appropriate financial statement and show how Schubert will report its ending receivables balance in the company's 2017 annual report.
4. Schubert began 2017 owing accounts payable of $9 million. Schubert incurs all expenses on account. During 2017, Schubert paid $18 million on account. How much in accounts payable did Schubert owe at the end of 2017? Identify the appropriate financial statement and show how Schubert will report these accounts payable in its 2017 annual report.