Question 1

a. The Valz Corporation had a balance in its Equipment account at the beginning of the year of $325,000. During the year, equipment that originally cost $85,000 and had accumulated depreciation of $20,000 was sold for $67,000. The ending balance of the Equipment account was $275,000. What was the cost of the additional equipment purchased during the year?

b. Erie Company began the accounting period with $13,800 in accounts receivable. The ending balance in accounts receivable was $5,300. If the credit sales during the period were $25,000, what is the amount of cash received from customers?

c. The income statement of Collins Co. reported total sales revenue of $330,000 during the current year. Assume that all sales are credit sales. The company's comparative balance sheets reported a balance in accounts receivable of $45,000 at the beginning of the year and $60,000 at the end of the year. The cash inflow from customers during the current year equals: