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Determination of Missing AmountsCash Flow from Operating Activities Required: The computation of cash provided by operating activities requires analysis of the noncash current asset and
Determination of Missing AmountsCash Flow from Operating Activities
Required:
The computation of cash provided by operating activities requires analysis of the noncash current asset and current liability accounts. Using T accounts, determine the missing amounts for each of the following independent cases:
| Case 1 | |||
| Accounts receivable, beginning of year | $96,000 | ||
| Accounts receivable, end of year | 65,000 | ||
| Credit sales for the year | 107,000 | ||
| Cash sales for the year | 38,000 | ||
| Write-offs of uncollectible accounts | 22,000 | ||
| Total cash collections for the year (from cash sales and collections on account) | $ | ||
| Case 2 | |||
| Inventory, beginning of year | $30,000 | ||
| Inventory, end of year | 48,000 | ||
| Accounts payable, beginning of year | 23,000 | ||
| Accounts payable, end of year | 16,000 | ||
| Cost of goods sold | 158,000 | ||
| Cash payments for inventory (assume all purchases of inventory are on account) | $ | ||
| Case 3 | |||
| Prepaid insurance, beginning of year | $21,000 | ||
| Prepaid insurance, end of year | 26,000 | ||
| Insurance expense | 17,000 | ||
| Cash paid for new insurance policies | $ | ||
| Case 4 | |||
| Income taxes payable, beginning of year | $102,000 | ||
| Income taxes payable, end of year | 128,000 | ||
| Income tax expense | 64,000 | ||
| Cash payments for taxes | $ | ||
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