Determine for the Bills Company:

A) Cash Received from customers

B) Cash paid to suppliers

C) Cash paid for operating expenses

D) Cash Paid for interest

E) Cash paid for income taxes

You can show your work, providing opportunities for partial credit, by simply showing=g what numbers you added and subtracted. For example: cash paid for operating expenses x + y - z = Total

December 31

2020 2019

Debits

Accounts Receivable 68,000. 85,000

Inventory. 32,000. 25,700

Prepaid Rent. 12,000. 16,000

Prepaid Insurance. 9,000. 54,000

Supplies. 23,000. 28,100

Land. 75,000. 92,000

Equipment. 80,000. 80,000

Credits

Acc. Depreciation- Equip 48,000. 12,000

Accounts payable. 31,000. 75,300

income taxes payable 10,200. 12,600

Bonds Payable. 90,000. 90,000

Discount on bonds payable 3,800. 4,900

Income Statement

For the year ended December 31, 2020

Sales Revenue 840,000

Cost of Goods sold. 632,000

Gross Margin. 208,000

Operating expenses

Selling expenses 65,000

Administrative Exp. 40,000

Depreciation Exp. 36,000. 141,000

Income from operating expenses. 67,000

Other Revenue/ Expenses

Gain on sale of land. 8,200

Interest Expenses (5,900). 2,300

Income before taxes 64,700

Income tax expense 12,300

Net Income. 52,400