Oak Associates $ 195,000 225,000 Cost of goods sold Inventory purchases from suppliers made using cash Inventory purchases from suppliers made on account Cash payments to suppliers on account Beginning inventory Ending inventory Beginning accounts payable Ending accounts payable Required: Ames Companies $ 190,000 @ 205,000 158,000 120,000 135,000 98,000 145,000 Tobias Industries $ 380,000 210,000 225,800 185,000 205,000 260,000 85,000 125,000 105,000 135,000 8 1. What amount did each company deduct on the income statement related to inventory? 2. What total amount did each company pay out in cash during the period related to inventory purchased with cash and on account? 3. By what amount do your answers in requirements 1 and 2 differ for each company? 4. By what amount did each company's inventory Increase (decrease)? By what amount did each company's accounts payable increase (decrease)? 5. Using the indirect method of presentation, what amount() must each company add (deduct) from net income to convert from accrual to cash basis? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Required What amount did each company deduct on the income statement related to inventory? Oak Associates Amos Companies Tobias Industries Required 2 > Oak Ames Tobias Associates Companies Industries Cost of goods sold $ 195,000 $ 190,000 $ 380,080 Inventory purchases from suppliers made using cash 225,000 @ 210,000 Inventory purchases from suppliers made on account @ 205,000 225,000 Cash payments to suppliers on account 158,000 185,000 Beginning inventory 185,000 120,000 205,000 Ending inventory 135,000 135,000 260,000 Beginning accounts payable 98,000 85,000 Ending accounts payable 145,000 125,000 Required: 1. What amount did each company deduct on the income statement related to inventory? 2. What total amount did each company pay out in cash during the period related to inventory purchased with cash and on account? 3. By what amount do your answers in requirements 1 and 2 differ for each company? 4. By what amount did each company's inventory increase (decrease)? By what amount did each company's accounts payable Increase (decrease)? 5. Using the indirect method of presentation, what amounts) must each company add (deduct) from net income to convert from accrual to cash basis? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Required What total amount did each company pay out in cash during the period related to inventory purchased with cash and on account? Oak Associates Ames Companies Tobias Industries Total Cash Paid Oak Ames Tobias Associates Companies Industries Cost of goods sold $ 195,000 $ 190,000 $ 380,000 Inventory purchases from suppliers made using cash 225,000 210,000 Inventory purchases from suppliers made on account 6 205,000 225,000 Cash payments to suppliers on account 0 158,000 185,000 Beginning inventory 105,000 120,000 205,000 Ending inventory 135,000 135,000 260,000 Beginning accounts payable 98,000 85,000 Ending accounts payable 6 145,000 125,000 Required: 1. What amount did each company deduct on the income statement related to inventory? 2. What total amount did each company pay out in cash during the period related to inventory purchased with cash and on account? 3. By what amount do your answers in requirements 1 and 2 differ for each company? 4. By what amount did each company's inventory increase (decrease)? By what amount did each company's accounts payable increase (decrease)? 5. Using the indirect method of presentation, what amount(s) must each company add (deduct) from net income to convert from accrual to cash basis? Complete this question by entering your answers in the tabs below. Required: Required 2 Required 3 Required 4 Required By what amount do your answers in requirements 1 and 2 differ for each company? Ames Companies Tobias Industries Difference Oak Associates (Required 2 Required 4 > Cost of goods sold Inventory purchases from suppliers made using cash Inventory purchases from suppliers made on account Cash payments to suppliers on account Beginning inventory Ending inventory Beginning accounts payable Ending accounts payable Oak Associates $ 195,000 225,000 0 0 105,000 135,000 Ames Companies $ 190,000 0 205,000 158,000 120,000 135,000 98,000 145,000 Tobias Industries $ 380,000 210,000 225,000 185,000 205,000 260,000 85,000 125,000 Required: 1. What amount did each company deduct on the income statement related to inventory? 2. What total amount did each company pay out in cash during the period related to inventory purchased with cash and on account? 3. By what amount do your answers in requirements 1 and 2 differ for each company? 4. By what amount did each company's inventory increase (decrease)? By what amount did each company's accounts payable Increase (decrease)? 5. Using the Indirect method of presentation, what amount(s) must each company add (deduct) from net income to convert from accrual to cash basis? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Required 5 By what amount did each company's inventory increase (decrease)? By what amount did each company's accounts payable Increase (decrease) Onk Associates Ames Companies Tobias Industrien Inventory Accounts Payable Oak Ames Tobias Associates Companies Industries Cost of goods sold $ 195,000 $ 190,000 $ 380,000 Inventory purchases from suppliers made using cash 225,000 210,000 Inventory purchases from suppliers made on account @ 205,000 225,000 Cash payments to suppliers on account 158,000 185,000 Beginning inventory 105,000 120,000 205,000 Ending inventory 135,000 135,000 260,000 Beginning accounts payable 98,000 85,000 Ending accounts payable 145,000 125,000 Required: 1. What amount did each company deduct on the income statement related to inventory? 2. What total amount did each company pay out in cash during the period related to inventory purchased with cash and on account 3. By what amount do your answers in requirements 1 and 2 differ for each company? 4. By what amount did each company's inventory increase (decrease)? By what amount did each company's accounts payable Increase (decrease)? 5. Using the Indirect method of presentation, what amount(s) must each company add (deduct) from net income to convert from accrual to cash basis? Complete this question by entering your answers in the tabs below. Required: Required 2 Required 3 Required 4 Required 5 Using the Indirect method of presentation, what amount() must each company add (deduct) from net income to convert from accrual to cash basis? Oak Associates Ames Companies Tobias Industries Inventory Accounts Payable Total