The following data are for Ernst Company. Note: All inventory is purchased on account, and Accounts Payable relates only to the purchase of inventory.

Instructions:
Compute the following:
1. The ending balance in the prepaid rent account.
2. The beginning balance in the wages payable account.
3. The amount of Cost of Goods Sold for 2011.
4. The amount of Wages Expense for 2011.
5. The amount of reported Net Income for 2011.
6. The amount of cash collected from customers during 2011.
7. The amount of cash paid for inventory during2011.

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Dec. 31, 2011 Dec. 31, 2010 BALANCE SHEET DATA (partial) Accounts receivable Inventory Prepaid rent Accounts payable Wages payable INCOME STATEMENT DATA Sales Cost of goods sold Wages expense Rent expense Other expenses Net income Accounts receivaD 72.000 54.000 $65,000 41,000 8,000 52,000 44,000 23,000 $485,000 22,000 121,000 CASH FLOW DATA Net income +- Change in accounts receivable +-Change in inventory +1- Change in accounts payable +-Change in prepaid rent (7.000) (13,000) (8,000) 6,000 Cash from operating activities OTHER DATA Cash collected from customers... Cash paid for inventory 230,000 27,000 81,000 121,000 on account Cash paid for rent Cash paid for wages Cash paid for other expenses