Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Castaway Co. Balance Sheet Assets: 20X1 20X2 Cash 100,000 100,000 Accounts Receivable 48,000 30,000 Inventory 65,000 50,000 Prepaid Rent 6,000 12,000 Equipment 125,000 300,000 Accumulated

Castaway Co.
Balance Sheet
Assets: 20X1 20X2
Cash 100,000 100,000
Accounts Receivable 48,000 30,000
Inventory 65,000 50,000
Prepaid Rent 6,000 12,000
Equipment 125,000 300,000
Accumulated Dep 25,000 35,000
BV of Equipment 100,000 265,000
Land 50,000 20,000
Total Assets $ 369,000 $ 477,000

Liabilities:
Accounts Payable 40,000 45,000
Insurance Payable 0 5,000
Notes Payable 250,000 200,000
Total Liabilities 290,000 250,000
OE:
Stock 69,000 200,000
Retained Earnings 10,000 27,000
Total OE 79,000 227,000
Total Liabilities + OE 369,000 477,000

Castaway Co.
Income Statement
for 20X2
Revenues $ 200,000
COGS 75,000
Gross Profit 125,000
Insurance Expense 5,000
Rent Expense 6,000
Supplies Expense 5,000
Depreciation Expense 10,000
Interest Expense 8,000
Net Income $ 91,000

What is cash paid for inventory? Please use a positive number for your answer, even though it is cash paid.

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

Students also viewed these Accounting questions