Question

Case X:	Compute cash received from customers:
	Sales	$	700,000
	Accounts receivable, Beginning balance		48,000
	Accounts receivable, Ending balance		66,240
Case Y:	Compute cash paid for rent
	Rent expense	$	106,300
	Rent payable, Beginning balance		12,900
	Rent payable, Ending balance		10,836
Case Z:	Compute cash paid for inventory
	Cost of goods sold	$	465,000
	Inventory, Beginning balance		144,150
	Accounts payable, Beginning balance		60,543
	Inventory, Ending balance		118,203
	Accounts payable, Ending balance		75,073

For each of the above three separate cases, use the information provided about the current-year operations of Sahim Company to compute the required cash flow information. Assume all purchases and sales of inventory are on credit

Answer 1

Answer:

Case X:

Cash Received From Customers = Sales + Opening Account Receivable - Closing Account Receivable

Cash Received from Customer = 700000+ 48000- 66240 = $681,760

Case Y:

Cash Paid For Rent: Opening Rent Payable + Rent Expenses - Closing Rent Payable

Cash Paid For Rent: 12900+ 106300- 10836= $108,364

Case Z:

Purchase = Cost of Goods Sold + Closing Inventory - Opening Inventory

Purchase = 465000+ 118203- 144150 = $469,053

Cash Paid For Merchandise = Opening Account Payable + Purchase - Closing Account Payable

Cash Paid For Merchandise = 60543 + 469053- 75073= $454,523