Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Balance Sheet Year 1 Year 2 Year 3 Assets Cash 50,000 40,000 92,000 Prepaid Insurance 6,000 3,000 6,000 Accounts Receivable 25,000 45,000 30,000 Inventory

image text in transcribedimage text in transcribed

Balance Sheet Year 1 Year 2 Year 3 Assets Cash 50,000 40,000 92,000 Prepaid Insurance 6,000 3,000 6,000 Accounts Receivable 25,000 45,000 30,000 Inventory 10,000 10,000 39,000 Building 100,000 100,000 Accumulated Depreciation 25,000 30,000 Book Value of Building 75,000 70,000 Investments 10,000 Total Assets 166,000 168,000 177,000 Liabilities Accounts Payable 25,000 15,000 40,000 Notes Payable 80,000 10,000 Interest Payable 4,000 1,000 Total Liabilities 109,000 16,000 50,000 Owners Equity Retained Earnings 50,000 75,000 50,000 Stock 7,000 77,000 77,000 Total Owners Equity 57,000 152,000 127,000 Total Liabilities 109,000 16,000 50,000 Owners Equity Retained Earnings 50,000 75,000 50,000 Stock 7,000 77,000 77,000 Total Owners Equity 57,000 152,000 127,000 Total Liabilities & Owners 166,000 168,000 177,000 Equity Income Statement Year 2 Year 3 Revenues 120,000 150,000 COGS 65,000 75,000 Gross Profit 55,000 75,000 Insurance Expense 3,000 3,000 Depreciation Expense 5,000 5,000 Interest Expense 1,000 2,000 Net Income 46,000 65,000 Using the attached Balance Sheet (Beginning Balance = Year1 and Ending Balance = Year2) and Income Statement from Year 2, what is Cash Paid for Inventory? Please enter a positive number, even though it represents cash paid. 70,000

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

Survey of Accounting

Authors: Edmonds, old, Mcnair, Tsay

2nd edition

9780077392659, 978-0-07-73417, 77392655, 0-07-734177-5, 73379557, 978-0073379555

More Books

Students also viewed these Accounting questions

Question

Describe the typical terrorist cell.

Answered: 1 week ago

Question

10. What is meant by a feed rate?

Answered: 1 week ago

Question

Can memory of an event change with the course of time?

Answered: 1 week ago

Question

How are false memories created?

Answered: 1 week ago