Question
30. (8 points) Selected information for Evan Company follows: Balance sheet accounts:05-31-1706-30-17 Cash$270,000$253,000 Accounts receivable425,000500,000 Inventory400,000360,000 Prepaid rent75,00095,000 Accounts payable (for inventory purchases only)130,000155,000 Accrued
30. (8 points) Selected information for Evan Company follows:
Balance sheet accounts:05-31-1706-30-17
Cash$270,000$253,000
Accounts receivable425,000500,000
Inventory400,000360,000
Prepaid rent75,00095,000
Accounts payable (for inventory purchases only)130,000155,000
Accrued wages payable63,00047,000
Accrued interest payable7,00015,000
Unearned revenue40,00050,000
Income statement amounts for June 2017:
Sales revenue$980,000
Cost of goods sold312,000
Selling, general, and administrative expenses*410,000
Interest expense30,000
* includes $36,000 of depreciation expense
Evan entered into the following transactions during the month ended 06-30-17:
Issued 5,000 shares of stock in exchange for 5 acres of land. Evan is a publicly traded company. At the time of issuance, one share of Evan's stock had a fair market value of $40.
Evan borrowed $150,000.
Evan sold a fixed asset for $44,000. At the time of the sale, the fixed asset's book value was $20,000.
Calculate for following for the month of June 2017:
a.Cash collections from customers
b.Cash payments for inventory
c.Cash payments for selling, general, and administrative expenses
d.Cash payments for interest
e.Cash provided by or used in investing activities.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started