Inferring cash flows from trial balance data. Exhibit 4.37 presents trial balance excerpts for Heidi's Hide-Out, a bar and video-game club, with private rooms for rent for parties. The trial balance at the beginning of the year is post-closing, meaning that the firm closed its income statement accounts at the end of the previous year and has not yet entered income transactions for the current year. The trial balance at the end of the year is adjusted preclosing, meaning that the firm has made all adjusting

entries for the year to properly measure net income but has not yet closed its income statement accounts to retained earnings. Heidi's deals with - many employees, to some of whom it has made advances on wages and to some of whom it owes wages for past work;
- many landlords, to some of whom it has made advance payments and to some of whom it owes rent for past months;
- many customers, some of whom have paid for special parties not yet held and some of whom have not yet paid for parties they have held; and - many suppliers of goods, including food and beverages, some of whom Heidi's has paid for orders not yet received and some of whom have delivered goods for which Heidi's has not yet paid.
Heidi's and its customers, suppliers, and employees settle all transactions with cash, never with noncash assets.

a. Calculate the amount of cash received from retail customers during the current year.

b. Calculate the amount of cash Heidi's paid landlords during the current year for the rental of space.

c. Calculate the amount of cash Heidi's paid employees during the current year.

d. Calculate the amount of cash Heidi's paid suppliers of retail merchandise, which includes food and beverages it sells to retail customers, during the current year.

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EXHIBIT 4.36 Net Sales RV SUPPLIERS, INC. Income Statement lall dollar amounts in thousands) (Problem 33) Cost of Goods Sold Gross Margin .. Operating Expenses Income (Loss) before Income Taxes Income Taxes Net Income (Loss). Year 4 Year 5 Year 6 $266.4 $424.0 (191.4) (314.6) $247.4 (210.6) $ 75.0 $109.4 $ 36.8 (58.4) (35.5) $ 51.0 $ 39.5 (12.3) (16.4) $ 27.2 $ 34.6 (55.2) $ (18.4) 5.0 S (13.4) *Includes depreciation expense of $1.7 in Year 4, $4.8 in Year 5, and $8.0 in Year 6.