Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Modern Advanced Accounting in Canada

Authors: Hilton Murray, Herauf Darrell

8th edition

1259087557, 1057317623, 978-1259087554

More Books

Students also viewed these Accounting questions