Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Required information (The following information applies to the questions displayed below.) Erie Company reports the following comparative balance sheets and income statement information for the

image text in transcribed
image text in transcribed
Required information (The following information applies to the questions displayed below.) Erie Company reports the following comparative balance sheets and income statement information for the current year. 12/31/2016 Comparative Balance Sheets 12/31/2015 Assets Cash $ 102,000 Accounts receivable 46,000 Prepaid insurance 46,000 Inventory 22,000 Property, plant & equipment 54,000 Total Assets $ 270,000 $ 62,000 30,000 54,000 38,000 62,000 $246,000 Liabilities and Stockholder's Equity Accounts payable Salaries payable Long-term notes payable Common stock Retained earnings Total Liabilities and Stockholders' Equity 62,000 30,000 30,000 34,000 106,000 $ 270,000 $ 46,000 54,000 46,000 34,000 66,000 $246,000 2016 Income Statement Revenue Cost of goods sold Gross margin Operating expenses Net income $ 350,000 (174,000) 176,000 94,000) $ 82,000 What was the cash received from customers during the year? The following information applies to the questions displayed below.) Erie Company reports the following comparative balance sheets and income statement information for the current year. Comparative Balance Sheets 12/31/2015 12/31/2016 Cash Accounts receivable Prepaid insurance Inventory Property, plant & equipment Total Assets $ 102,000 46,000 46,000 22.000 54,000 $ 270,000 $ 62,000 30,000 54,000 38,000 62,000 $246,000 Liabilities and Stockholder's Equity Accounts payable Salaries payable Long-term notes payable Common stock Retained earnings Total Liabilities and Stockholders' Equity $ 62,000 30.000 38,000 34,000 106,000 $ 270,000 $ 46,000 54,000 46,000 34,000 66.000 $246,000 2016 Income Statement Revenue Cost of goods sold Gross margin Operating expenses Net income $ 350,000 (174,000) 176.000 94, 000) $ 82,000 Assuming accounts payable is used for inventory purchases only, what was the amount of cash paid for inventory purchases during the year

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Accounting Principles Understanding Important Terms And Principles Of Accounting

Authors: Lyndsay Sudduth

1st Edition

B0B5KV57NJ, 979-8840104033

More Books

Students also viewed these Accounting questions