Question

Exercise 23-7 Presented below are two independent situations. Situation A: Annie Lennox Co. reports revenues of...

Exercise 23-7 Presented below are two independent situations. Situation A: Annie Lennox Co. reports revenues of $204,070 and operating expenses of $109,950 in its first year of operations, 2014. Accounts receivable and accounts payable at year-end were $80,290 and $39,600, respectively. Assume that the accounts payable related to operating expenses. Ignore income taxes. Using the direct method, compute net cash provided (used) by operating activities. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).) Net cash by operating activities $ Situation B: The income statement for Blues Traveler Company shows cost of goods sold $312,970 and operating expenses (exclusive of depreciation) $227,210. The comparative balance sheet for the year shows that inventory increased $20,970, prepaid expenses decreased $8,410, accounts payable (related to merchandise) decreased $19,670, and accrued expenses payable increased $14,250. Compute (a) cash payments to suppliers and (b) cash payments for operating expenses. (a) Cash payments to suppliers $ (b) Cash payments for operating expenses

Homework Answers

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Exercise 23-3 The income statement of Pearl Company is shown below. PEARL COMPANY INCOME STATEMENT FOR...
Exercise 23-3 The income statement of Pearl Company is shown below. PEARL COMPANY INCOME STATEMENT FOR THE YEAR ENDED DECEMBER 31, 2017 Sales revenue $6,630,000 Cost of goods sold    Beginning inventory $1,840,000    Purchases 4,520,000    Goods available for sale 6,360,000    Ending inventory 1,530,000    Cost of goods sold 4,830,000 Gross profit 1,800,000 Operating expenses    Selling expenses 450,000    Administrative expenses 660,000 1,110,000 Net income $690,000 Additional information: 1. Accounts receivable decreased $290,000 during the year. 2. Prepaid expenses increased $180,000 during the year....
The following are independent situations. Sales = $610,000; Accounts receivable increased by $22,100. Calculate cash receipts...
The following are independent situations. Sales = $610,000; Accounts receivable increased by $22,100. Calculate cash receipts from sales. Cash receipts from sales $Enter cash receipts from sales in dollars       Cost of goods sold = $510,000; inventory decreased by $76,000; accounts payable decreased by $34,500. Calculate cash payments for purchases. Cash payments for purchases $Enter cash payments for purchases in dollars       The income statement shows $12,000 in income taxes. The balance sheet shows an increase in taxes...
The income statement of Indigo Company is shown below. INDIGO COMPANY INCOME STATEMENT FOR THE YEAR...
The income statement of Indigo Company is shown below. INDIGO COMPANY INCOME STATEMENT FOR THE YEAR ENDED DECEMBER 31, 2017 Sales revenue $ 6,630,000 Cost of goods sold    Beginning inventory $ 1,840,000    Purchases 4,520,000    Goods available for sale 6,360,000    Ending inventory 1,530,000    Cost of goods sold 4,830,000 Gross profit 1,800,000 Operating expenses    Selling expenses 450,000    Administrative expenses 660,000 1,110,000 Net income $ 690,000 Additional information: 1. Accounts receivable decreased $ 290,000 during the year. 2. Prepaid expenses increased $ 180,000...
The income statement of Sandhill Company is shown below. SANDHILL COMPANY INCOME STATEMENT FOR THE YEAR...
The income statement of Sandhill Company is shown below. SANDHILL COMPANY INCOME STATEMENT FOR THE YEAR ENDED DECEMBER 31, 2020 Sales revenue $6,860,000 Cost of goods sold Beginning inventory $1,810,000 Purchases 4,790,000 Goods available for sale 6,600,000 Ending inventory 1,570,000 Cost of goods sold 5,030,000 Gross profit 1,830,000 Operating expenses Selling expenses 420,000 Administrative expenses 640,000 1,060,000 Net income $770,000 Additional information: 1. Accounts receivable decreased $280,000 during the year. 2. Prepaid expenses increased $160,000 during the year. 3. Accounts...
Income Statement Covid Company for the year ended December 31, 2019 shows sales revenue $6,000,000 and...
Income Statement Covid Company for the year ended December 31, 2019 shows sales revenue $6,000,000 and COGS $3,800,000 . Accounts receivable increased $250,000 during the year, and inventory decreased $300,000. Accounts payable to suppliers of merchandise decreased $450,000 during the year. Accrued expenses payable decreased $90,000 during the year. Operating expenses include depreciation expense of $1,600,000. Depreciation expense was $100,000. Prepare Statement of Cash Flow Operating Activities Section for Covid Company.
The income statement for Strait Horn Inc., a publicly traded company following IFRS, is presented here...
The income statement for Strait Horn Inc., a publicly traded company following IFRS, is presented here Strait Horn Inc. Income Statement Year Ended December 31, 2019 Sales $5,200,000 Cost of Goods Sold $3,155,000 Gross Profit $2,045,000 Operating Expenses $1,025,000 Profit from Operations $1,020,000 Interest Expense $120,000 Profit before Income Taxes $900,000 Income Taxes $230,000 Profit $670,000 Additional Information: 1. Operating expenses include $50,000 of depreciation expense and a $45,000 impairment loss on property, plant and equipment. 2. Accounts Receivable increased...
The income statement of Sheffield Company is shown below. SHEFFIELD COMPANY INCOME STATEMENT FOR THE YEAR...
The income statement of Sheffield Company is shown below. SHEFFIELD COMPANY INCOME STATEMENT FOR THE YEAR ENDED DECEMBER 31, 2017 Sales revenue $7,430,000 Cost of goods sold Beginning inventory $2,090,000 Purchases 4,770,000 Goods available for sale 6,860,000 Ending inventory 1,440,000 Cost of goods sold 5,420,000 Gross profit 2,010,000 Operating expenses Selling expenses 440,000 Administrative expenses 690,000 1,130,000 Net income $880,000 Additional information: 1. Accounts receivable decreased $350,000 during the year. 2. Prepaid expenses increased $150,000 during the year. 3. Accounts...
The income statement of Martinez Corp. is presented here. Martinez Corp. Income Statement For the Year...
The income statement of Martinez Corp. is presented here. Martinez Corp. Income Statement For the Year Ended November 30, 2017 Sales revenue $7,697,000 Cost of goods sold     Beginning inventory $1,893,400     Purchases 4,315,800     Goods available for sale 6,209,200     Ending inventory 1,568,500 Total cost of goods sold 4,640,700 Gross profit 3,056,300 Operating expenses     Selling expenses 446,100     Administrative expenses 693,000 1,139,100 Net income $1,917,200 Additional information: 1. Accounts receivable decreased $386,500 during the year, and inventory decreased $324,900. 2. Prepaid expenses increased $147,600...
Exercise 23-12 Condensed financial data of Windsor Company for 2017 and 2016 are presented below. WINDSOR...
Exercise 23-12 Condensed financial data of Windsor Company for 2017 and 2016 are presented below. WINDSOR COMPANY COMPARATIVE BALANCE SHEET AS OF DECEMBER 31, 2017 AND 2016 2017 2016 Cash $1,770 $1,170 Receivables 1,780 1,300 Inventory 1,570 1,880 Plant assets 1,870 1,710 Accumulated depreciation (1,210 ) (1,190 ) Long-term investments (held-to-maturity) 1,290 1,430 $7,070 $6,300 Accounts payable $1,200 $900 Accrued liabilities 200 250 Bonds payable 1,430 1,580 Common stock 1,860 1,730 Retained earnings 2,380 1,840 $7,070 $6,300 WINDSOR COMPANY INCOME...
7. Presented below is information related to the operations of Teachable NEMA Inc. Income statement For...
7. Presented below is information related to the operations of Teachable NEMA Inc. Income statement For the year ended December 31, 2015 Sales 408,000 Cost of goods sold 190,000 Gross Profit 218,000 Depreciation expense 14,000 Other operating expenses 141,000 Income from operations 63,000 Loss on sale of equipment 2,000 Income before income taxes 61,000 Income tax expense 19,000 Net income $42,000 December 31- - - 2015 2014 Cash $ 58,000 $ 40,000 Accounts receivable 55,000 48,000 Inventory 35,000 22,000 Prepaid...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT