Question
Emilios boss has asked him to provide some cash flow information for the companys upcoming budget meeting. In particular, his boss is interested knowing the
Emilios boss has asked him to provide some cash flow information for the companys upcoming budget meeting. In particular, his boss is interested knowing the amount of credit sales for the year and the amount of cash paid for income taxes. Emilio looked in his accounting records and found the following:
Accounts receivable had a beginning balance of $65,750 and an ending balance of $71,300. During the year the company had collected $146,800 on account.
- Determine the amount of credit sales.
Income taxes payable had a balance of $14,200 at the beginning of the year and a balance of $8,600 at the end of the year. The income tax expense for the year was $54,900.
- Determine the amount of cash that was paid for income tax during the year.
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