. Determine cash receipts and/or payments involved with the data presented (I have supplied you the answer to part a in order to help you understand what I am asking):

Income Statement Balance Sheet

For year Beg year End year

a. Sales revenue (on credit) $250,000

Accounts Receivable (net) $30,000 $35,000

Cash receipts related to sales were $245,000. I figured this out by making a t-account of accounts receivable and solving for the cash collected. Note that by indicating that Accounts Receivable is net, you dont need to worry about bad debts or the allowance for doubtful accounts in this setting.

Accounts Receivable (net)
Beginning Balance $30,000 Sales on account $250,000	$245,000 must be the cash collected
Ending Balance $35,000

Income Statement Balance Sheet

For year Beg year End year

b. Income taxes expense $ 42,000

Income taxes Payable $18,000 $17,000

Income Statement Balance Sheet

For year Beg year End year

c. Cost of goods sold $109,000

Inventory $34,000 $36,000

Accounts Payable $18,000 21,000