The following selected information is taken from the general ledger of Carnival Limited:
(a)
Sales revenue................................................$160,000
Accounts receivable, January 1........................16,000
Accounts receivable, December 31..................14,000
Unearned revenue, January 1.............................2,000
Unearned revenue, December 31.......................5,000
(b)
Cost of goods sold.........................................$85,000
Inventory, January 1........................................11,200
Inventory, December 31..................................12,900
Accounts payable, January 1.............................2,500
Accounts payable, December 31.......................5,700
(c)
Salaries expense.............................................$45,000
Salaries payable, January 1................................2,500
Salaries payable, December 31..........................3,675
(d)
Operating expenses........................................$50,000
Accrued expenses payable, January 1 ...............4,200
Accrued expenses payable, December 31..........3,900
Prepaid expenses, January 1...............................2,600
Prepaid expenses, December 31.........................2,150
Instructions
Using the above information and the direct method, calculate the
(a) Cash receipts from customers,
(b) Cash payments to suppliers,
(c) Cash payments to employees, and
(d) Cash payments for operating expenses.