Question

Use the following information for the next four (4) questions. Bel Air Company provided the following...

Use the following information for the next four (4) questions. Bel Air Company provided the following data for the current year:

Sales - 10,000,000

Cost of goods sold-5,300,000

Operating Expense- 3,800,000

December 31 January 1
Preparing operating expense 1,000,000 700,000
Accounts Payable 1,350,000 1,200,000
Inventory 2,500,000 2,100,000
Accounts receivable 1,400,000 1,375,000

1. How much was the collections from sales?

2. What amount was paid to suppliers?

3. How much was paid for operating expense?

4. How much is the cash basis net income?

Homework Answers

Answer #1

Answer 1 Collection from sales

Total Sales this year 10,000,000

Plus + account receivables opening 1,375,000

Minus (-) account receivables closing 1,400,000

Therefore cash collected from sales is 9,975,000

Answer 2 paid to supplier

Goods purchased in year = cost of goods sold + closing inventory - opening inventory

Which is 5,300,000 + 2,500,000 (-) 2,100,000

= 5,700,000

Now amount paid to suppliers are purchases during year + opening accounts payable (-) closing accounts payable

= 5,700,000 +1,200,000 (-) 1,350,000

= 5,550,000

Answer 3 operating expenses

Operating expenses paid during year = operating expenses for the year + opening balance (-) closing balance

= 3,800,000 + 700,000 (-) 1,000,000

= 3,500,000

Answer 4 cash basis net income

Total collection (-) operating expenses (-) paid to suppliers

= 9,975,000 (-) 3,500,000 (-) 5,550,000

= 925,000

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
Use the following information for the next four (4) questions. Bel Air Company provided the following...
Use the following information for the next four (4) questions. Bel Air Company provided the following data for the current year: Sales - 10,000,000 Cost of goods sold-5,300,000 Operating Expense- 3,800,000 December 31 January 1 Preparing operating expense 1,000,000 700,000 Accounts Payable 1,350,000 1,200,000 Inventory 2,500,000 2,100,000 Accounts receivable 1,400,000 1,375,000 1. How much was the collections from sales? 2. What amount was paid to suppliers? 3. How much was paid for operating expenses? 4. How much is the cash...
​ Answer the following questions according to Table​ 4-1. Table​ 4-1 ​ Zcijekoulo, Inc. Balance Sheet...
​ Answer the following questions according to Table​ 4-1. Table​ 4-1 ​ Zcijekoulo, Inc. Balance Sheet ​Assets: Cash and marketable securities ​$600,000 Accounts receivable ​900,000 Inventories ​1,500,000 Prepaid expenses ​75,000 Total current assets ​$3,075,000 Fixed assets ​8,000,000 ​Less: accum. depr. ​(2,075,000) Net fixed assets ​$5,925,000 Total assets ​$9,000,000 ​Liabilities: Accounts payable ​$800,000 Notes payable ​700,000 Accrued taxes ​50,000 Total current liabilities ​$1,550,000 Longminus−term debt ​2,500,000 ​Owner's equity​ (1 million shares of common stock​ outstanding) ​4,950,000 Total liabilities and​ owner's equity...
The accounting records of Swan Ltd recorded the following information. 30-Jun-19 30-Jun-20 Accounts receivable 50,000 30,000...
The accounting records of Swan Ltd recorded the following information. 30-Jun-19 30-Jun-20 Accounts receivable 50,000 30,000 Inventories 87,000 70,000 Prepaid expenses 40,000 30,000 Dividend receivable 21,000 23,000 Land 490,000 1,000,000 Property 4,000,000 4,000,000 Accounts payable for inventories purchased 70,000 80,000 Bills payable 40,000 44,000 Employee benefit liabilities 59,000 42,000 Provision for warranty 40,000 30,000 Debenture 100,000 400,000 Sales revenue 3,800,000 5,000,000 Dividend revenue 28,000 60,000 Depreciation expense 320,000 350,000 Cost of sales 3,900,000 3,500,000 Warranty expenses 80,000 100,000 Other operating...
Juroe Company provided the following income statement for last year: Sales $11,600,000 Cost of goods sold...
Juroe Company provided the following income statement for last year: Sales $11,600,000 Cost of goods sold 3,000,000 Gross margin $8,600,000 Operating expenses 3,800,000 Operating income $4,800,000 Interest expense 1,000,000 Income before taxes $3,800,000 Income taxes 1,400,000 Net income $2,400,000 Juroe's balance sheet as of December 31 last year showed total liabilities of $11,200,000, total equity of $6,450,000, and total assets of $17,650,000. Required: 1. Calculate the return on sales. Round to two decimal places. % 2. The return on sales...
Use the following information about Yak Corporation to answer the next four questions. The Accounts Receivable...
Use the following information about Yak Corporation to answer the next four questions. The Accounts Receivable balance for Yak Corporation is $82,000 at October 31, 2020. Before calculating and recording October 2020 bad debt expense, the Allowance for Doubtful Accounts has a debit balance of $3,000. Sales for the month are $950,000. An aging of accounts receivable results in a $17,200 estimate for the Allowance for Doubtful Accounts as of October 31, 2020. In the past several years, 2% of...
Use the following information for Questions 44 and 45: Your company shows the following data at...
Use the following information for Questions 44 and 45: Your company shows the following data at the end of its first year: Credit sales for the year $1,000,000 Accounts Receivable balance 100,000 Allowance for Doubtful Accounts 4,000 credit balance 44. If the bad debt is estimated as 1% of credit sales, the adjusting entry for bad debt expense includes a debit for . . . a. $14,000. b. $10,000. c. $6,000. d. $0. 45. If your company estimates that it...
Edman Company is a merchandiser that has provided the following balance sheet and income statement for...
Edman Company is a merchandiser that has provided the following balance sheet and income statement for this year. Beginning Balance Ending Balance Assets Cash $ 62,800 $ 150,000 Accounts receivable 160,000 180,000 Inventory 230,000 240,000 Property, plant & equipment (net) 833,000 793,000 Other assets 37,000 37,000 Total assets $ 1,322,800 $ 1,400,000 Liabilities & Stockholders’ Equity Accounts payable $ 70,000 $ 80,000 Bonds payable 550,000 550,000 Common stock 410,000 410,000 Retained earnings 292,800 360,000 Total liabilities & stockholders’ equity $...
The Tanner Company provided the following information for 2019, after year-end adjustments. Allowance for doubtful accounts...
The Tanner Company provided the following information for 2019, after year-end adjustments. Allowance for doubtful accounts was $11,000 at the beginning of the year, and $30,000 at the end of the year. Accounts receivable (gross) were $80,000 at the beginning of the year, and $420,000 at the end of the year. Accounts written off as uncollectible during the year were $10,000. Sales totaled $2,700,000. Half of the sales were in cash; half were on credit. Like all temporary income statement...
Edman Company is a merchandiser that has provided the following balance sheet and income statement for...
Edman Company is a merchandiser that has provided the following balance sheet and income statement for this year. Beginning Balance Ending Balance Assets Cash $ 62,800 $ 150,000 Accounts receivable 160,000 180,000 Inventory 230,000 240,000 Property, plant & equipment (net) 833,000 793,000 Other assets 37,000 37,000 Total assets $ 1,322,800 $ 1,400,000 Liabilities & Stockholders’ Equity Accounts payable $ 70,000 $ 80,000 Bonds payable 550,000 550,000 Common stock 410,000 410,000 Retained earnings 292,800 360,000 Total liabilities & stockholders’ equity $...
The financial statements of Flathead Lake Manufacturing Company are shown below. Income Statement 2017 Sales $...
The financial statements of Flathead Lake Manufacturing Company are shown below. Income Statement 2017 Sales $ 9,300,000 Cost of Goods Sold 5,750,000 Depreciation Expense 550,000 Gross Profit $ 3,000,000 Selling and Administrative Expenses 2,200,000 EBIT $ 800,000 Interest Expense 200,000 Income before Tax $ 600,000 Taxes 375,000 Net Income $ 225,000 Flathead Lake Manufacturing Comparative Balance Sheets 2017 2016 Cash $ 50,000 $ 40,000 Accounts Receivable 570,000 600,000 Inventory 530,000 460,000 Total Current Assets $ 1,150,000 $ 1,100,000 Fixed Assets...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT