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Required: Compute the following using the Direct Method (Show your calculations). 1. How much is the cash received from customers? 2. How much is the
Required: Compute the following using the Direct Method (Show your calculations). 1. How much is the cash received from customers? 2. How much is the cash paid to suppliers? 3. How much is the operating expenses paid? The following comparative statement of financial position for Dubai Co. is given for the financial periods 2019 and 2020: 2020 PPE $430,000 2019 $395,000 Accumulated depreciation of PPE (160,000) (135,000) Copyrights 50,000 58,000 Receivables 16,000 10,000 Inventory 60,000 70,000 Prepaid expenses 63,000 49,000 Cash 172,000 71,000 $661.000 $518,000 Capital preferred shares $42,000 23,000 Premium on preferred shares 150,000 160,000 Common stock 66,000 56,000 Retained earnings 40,000 34,000 Bond payable 87,000 Accounts payable 60,000 45,000 Accrued liabilities 216 000 200.000 $581,000 $518,000 The income statement for 2020 is as follows: Net sales Cost of goods sold Gross profit Operating expenses Net income $760,000 473.000 289,000 210,000 $79.000
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