Use the information provided in each of the following independent situations to answer the questions. For each

Question:

Use the information provided in each of the following independent situations to answer the questions. For each situation, briefly explain the reasoning behind each of your calculations.

a. Cash paid to suppliers for merchandise during a period was $37,500. Accounts payable decreased during the period by $3,000. Inventory increased during the period by $3,500. What was the cost of goods sold for the period?

b. Interest paid during a period was $4,000. Interest payable decreased during the period by $1,200. What was the interest expense for the period?

c. Cash flow from operations for a period was $28,000. Current assets decreased during the period by $6,000. Current liabilities decreased during the period by $2,000. What was net income for the period?

d. Cash collected from customers for a fiscal period was $27,000. Accounts receivable increased during the period by $3,000. What was sales revenue for the period?

Accounts Payable
Accounts payable (AP) are bills to be paid as part of the normal course of business.This is a standard accounting term, one of the most common liabilities, which normally appears in the balance sheet listing of liabilities. Businesses receive... Accounts Receivable
Accounts receivables are debts owed to your company, usually from sales on credit. Accounts receivable is business asset, the sum of the money owed to you by customers who haven’t paid.The standard procedure in business-to-business sales is that...