Question
Here is some information for Zenda Company as follows: Balance sheet accounts: 05-31-19 06-30-19 Cash ___________________________$270,000 $253,000 Accounts receivable 425,000 500,000 Inventory 400,000 360,000 Prepaid
Here is some information for Zenda Company as follows:
Balance sheet accounts: 05-31-19 06-30-19
Cash ___________________________$270,000 $253,000
Accounts receivable 425,000 500,000
Inventory 400,000 360,000
Prepaid rent 75,000 95,000
Accounts payable (for inventory purchases only) 130,000 155,000
Accrued wages payable 63,000 47,000
Accrued interest payable 7,000 15,000
Unearned revenue 40,000 50,000
Income statement amounts for June 2019:
Sales revenue $980,000
Cost of goods sold 312,000
Selling, general, and administrative expenses* 410,000
Interest expense 30,000
* includes $36,000 of depreciation expense
Zenda entered into the following transactions during the month ended 06-30-19:
- Issued 5,000 shares of stock in exchange for 5 acres of land. Zenda is a publicly-traded company. At the time of issuance, one share of Zendas stock had a fair market value of $40.
- Zenda borrowed $150,000.
- Zenda sold a fixed asset for $44,000. At the time of the sale, the fixed assets book value was $20,000.
Calculate for following for the month of June 2019:
- Cash collections from customers
- Cash payments for inventory
- Cash payments for selling, general, and administrative expenses
- Cash payments for interest
- Cash provided by or used in investing activities.
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