Question
Selected balance sheet accounts (but not a complete balance sheet) and the 2019 income statement for Burton Co. appear below. Sales $300,000 Cost of goods
Selected balance sheet accounts (but not a complete balance sheet) and the 2019 income statement for Burton Co. appear below.
Sales $300,000
Cost of goods sold 150,000
Other operating expenses (includes $12,000 depreciation) 75,000
Interest expense 5,000
Income taxes 20,000
Net income $50,000
Earnings per share $0.25
___________________________________________________________________
12-31-19 12-31-18
Cash $ 30,000 $ 40,000
Accounts receivable 80,000 60,000
Merchandise inventories 125,000 110,000
Prepaid expenses 10,000 16,000
Accounts payable (for inventory) 70,000 80,000
Accrued wages and other operating liabilities 31,000 24,000
Income taxes payable 15,000 10,000
Notes payable 50,000 60,000
Required:
1. Calculate the amount paid to merchandise suppliers in 2019.
2. Calculate the net cash flow from operating activities for Burton Co. for 2019. Show all work for credit.
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