Question
The following information is available for the Goodman Company: Goodman Company Balance Sheet December 31, 2018 ASSETS Current Year Prior Year Cash $125,000 $100,000 Accounts
The following information is available for the Goodman Company:
Goodman Company | ||
Balance Sheet | ||
December 31, 2018 | ||
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ASSETS |
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| Current Year | Prior Year |
Cash | $125,000 | $100,000 |
Accounts Receivable | 515,000 | 500,000 |
Allowance for Doubtful Accounts |
(70,150) |
(60,000) |
Inventory | 660,000 | 500,000 |
Prepaid Expenses | 80,000 | 72,000 |
Equipment | 892,000 | 900,000 |
Less: Accumulated Depreciation |
(460,000) |
(452,500) |
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LIABILITIES |
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Accounts Payable | 430,000 | 370,000 |
Accrued Expenses | 250,000 | 230,000 |
Income Tax Payable | 58,000 | 50,000 |
Goodman Company | |
Income Statement | |
For Year Ending December 31, 2018 | |
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Sales (all sales are on credit) | $780,000 |
Cost of Goods Sold | 450,000 |
Gross Profit | $330,000 |
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Operating Expenses: |
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Bad Debt Expense | 25,150 |
Depreciation Expense | 11,500 |
Other Operating Expenses | 160,000 |
Loss on Sale of Equipment | 1,500 |
Income Tax Expense | 43,000 |
Determine the amount of cash flow associated with each of the following items:
1. | Cash receipts from customers. |
2. | Cash payments to suppliers. |
3. | Cash payments for other operating expenses. |
4. | Cash received from sale of equipment (no equipment purchases were made during the year and only one sale of equipment occurred). |
5. | Cash paid for income taxes. |
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