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Please answer 5 and 6 with work thanks Cash 7,636 5) During the twelve months ended 12/31/2017 Sampson sold 120,000 units of inventory for $25

Please answer 5 and 6 with work thanks image text in transcribed
Cash 7,636 5) During the twelve months ended 12/31/2017 Sampson sold 120,000 units of inventory for $25 each. All sales to customers were made "on account Sampson offers its customers an 18 month warranty and estimates that 15% of the units sold will result in warranty claims during the 18 months.Warranty claims are paid in cash and cost $8 per unit. Please consider the following selected account balances reported by Sampson (all balances are normal): 1. Accounts Receivable 2. Prepaid Insurance 3. Warranty Payable 4. Salaries Payable 12/31/2016 $240,000 $17,000 $48,000 $35,000 S310,000 S12,000 S52.000 $18,000 Salaries Expense Insurance Expense S265,000 $45,000 Select the answer below that represents the total combined cash inflow during 2017 from the following 2 items: 1. Cash collected as payment on account 2. Cash paid for insurance (you will calculate the cash flow related to warranty and salaries in the next question) A) $2,890,000 B)S2,885,000 C)$3,030,000 D)$3,025,000 EJNOTA 6) Continue with the Sampson facts. Select the answer below that represents the total combined cash outflow during 2017 from the following 2 items: 1. Cash paid to service warranty claims 2. Cash paid for salaries. A) S(409,000) B) S(405,000) )$(422.000) D) (426,000) E) NOTA

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