Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The following case study applies to questions 1 2 - 1 5 : Below is an extract of the Statement of Financial Position of a

The following case study applies to questions 12-15: Below is an extract of the Statement of Financial Position of a small company:
\table[[,2016,2015],[Current assets,,],[Inventory,250000,200000],[Accounts receivable,87000,170000],[Bank,350000,325000],[Current liabilities,,],[Accounts payable,128000,100000],[SARS taxation liability,72000,84000]]
The following information about the company is also given:
Sales for the year were R450000(All on credit)
Purchases made during the year were R125000(All on credit)
The company had a taxation expense of R65000
No bad debts were written off during the year
What was the total cash received from customers?
Select one:
a. R420000
b. R170000
c. R450000
d. R533000
What was the total cash paid to suppliers?
Select one:
a. R 97000
b.R77000
c. R128000
d. R450000
The total amount paid to SARS was R65000.
image text in transcribed

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

Step: 3

blur-text-image

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

Managerial Accounting

Authors: John J. Wild, Ken W. Shaw

2010 Edition

9789813155497, 73379581, 9813155493, 978-0073379586

More Books

Students also viewed these Accounting questions