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The following trial balance was prepared for Tile, Etc., Inc. on December 31, 2017, after the closing entries were posted: Account Title Cash $ 140,000
The following trial balance was prepared for Tile, Etc., Inc. on December 31, 2017, after the closing entries were posted:
Account Title | ||||||
Cash | $ | 140,000 | ||||
Accounts receivable | 131,000 | |||||
Allowance for doubtful accounts | $ | 21,000 | ||||
Inventory | 437,000 | |||||
Accounts payable | 101,000 | |||||
Common stock | 480,000 | |||||
Retained earnings | 106,000 | |||||
Tile, Etc. had the following transactions in 2018:
- Purchased merchandise on account for $610,000.
- Sold merchandise that cost $450,000 for $950,000 on account.
- Sold for $275,000 cash merchandise that had cost $172,000.
- Sold merchandise for $220,000 to credit card customers. The merchandise had cost $108,000. The credit card company charges a 4 percent fee.
- Collected $680,000 cash from accounts receivable.
- Paid $640,000 cash on accounts payable.
- Paid $151,000 cash for selling and administrative expenses.
- Collected cash for the full amount due from the credit card company (see item 4).
- Loaned $90,000 to J. Parks. The note had an 9 percent interest rate and a one-year term to maturity.
- Wrote off $8,100 of accounts as uncollectible.
- Made the following adjusting entries: (a) Recorded uncollectible accounts expense estimated at 1 percent of sales on account. (b) Recorded seven months of accrued interest on the note at December 31, 2018 (see item 9).
Required
- Organize the transaction data in accounts under an accounting equation.
- Prepare an income statement, a statement of changes in stockholders equity, a balance sheet, and a statement of cash flows for 2018
TILE, ETC., INC. | ||
Statement of Cash Flows | ||
For the Year Ended December 31, 2018 | ||
Cash flows from operating activities | ||
Inflow from customers | ||
Outflow for expenses | ||
Outflow for inventory | ||
not attempted | ||
Net cash flow from operating activities | ||
Cash flows from investing activities | ||
Outflow for notes receivableselected answer correct | (90,000)selected answer correct | |
not attempted | 0selected answer correct | |
Net cash flows from investing activities | (90,000) | |
Cash flows from financing activities | 0selected answer correct | |
Net change in cash | 1,232,700 | |
Plus: Beginning cash balanceselected answer correct | 140,000selected answer correct | |
Ending cash balance | $1,372,700 |
What's cash inflow from customers, outflow inventory, and outflow expenses
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