Development Corporation reports the following summary data for the most current year. a. Sales revenue totaled $$

Question:


Development Corporation reports the following summary data for the most current year.

a. Sales revenue totaled $\$ 251,500$.

b. Interest revenue for the period was $\$ 2,200$.

c. Interest expense for the period was $\$ 800$.

d. Cost of goods sold for the period was $\$ 156,000$.

e. Operating expenses, all paid in cash (except for depreciation of $\$ 15,000$ ), were $\$ 48,000$.

f. Income tax expense for the period was $\$ 8,000$.

g. Accounts receivable (net) increased by $\$ 10,000$ during the period.


h. Accounts payable decreased by $\$ 5,000$ during the period.
i. Inventory at the beginning and end of the period was $\$ 25,000$ and $\$ 35,000$, respectively.
j. Cash increased during the period by $\$ 5,000$.
Required:
Analysis of the Cash Account Assume all other current asset and current liability accounts remained constant during the period.
1. Compute the amount of cash collected from customers.
2. Compute the amount of cash paid for inventory.
3. Compute the amount of cash paid for operating expenses.
4. Compute the amount of cash flows provided by (used in) operations.
5. Interpretive Question: What must have been the combined amount of cash flows provided by (used in) investing and financing activities?

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

Survey Of Accounting

ISBN: 9780538846172

1st Edition

Authors: James D. Stice, W. Steve Albrecht, Earl Kay Stice, K. Fred Skousen

Question Posted: