Question
Condensed financial data of Needles Corporation appear below: NEEDLES CORPORATION Comparative Statements of Financial Position As at December 31, 2013 2013 2012 Assets Cash $74,700
Condensed financial data of Needles Corporation appear below:
NEEDLES CORPORATION
Comparative Statements of Financial Position
As at December 31, 2013
2013
2012
Assets
Cash
$74,700
$35,000
Accounts receivable
90,000
53,000
Merchandise inventory
120,000
132,000
Prepaid expenses
21,000
25,000
Long-term investments
90,000
75,000
Property, plant, and equipment
310,000
250,000
Accumulated depreciation
-65,000
-60,000
Total
$640,700
$510,000
Liabilities and Shareholders' Equity
Accounts payable
$93,000
$75,000
Accrued expenses payable
29,000
24,000
Bonds payable
135,000
160,000
Common shares
240,000
170,000
Retained earnings
143,700
81,000
Total
$640,700
$510,000
NEEDLES CORPORATION
Income Statement
Year Ended December 31, 2013
Sales
$500,000
Expenses:
Cost of goods sold
$295,000
Operating expenses
65,000
Depreciation expense
17,000
Interest expense
18,000
Loss on sale of equipment
3,000
398,000
Profit before income tax
102,000
Income tax expense
15,300
Profit
$86,700
Additional information regarding fiscal 2013:
1.New equipment costing $85,000 was purchased for cash.
2.Old equipment costing $25,000 was sold for $10,000 cash when the carrying amount was $13,000.
3.Cash dividends were declared and paid during the year.
4.Accounts payable pertain to merchandise purchases.
Using the DIRECT method, Cash Received from customers is? (assume all revenue is on credit)
Question 35 options:
$609,000
$463,000
$375,000
$325,000
None of the above
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