Question

For each of the following items, calculate the cash sources or cash uses that should be...

For each of the following items, calculate the cash sources or cash uses that should be recognized on the statement of cash flows for Baldin Co., for the year ended December 31, 2016:

a. Sales on account (all are collectible) amounted to $560,000, and accounts receivable decreased by $34,000. How much cash was collected from customers?

b.  Income tax expense for the year was $118,000, and income taxes payable decreased by $44,000. How much cash was paid for income taxes?

c. Cost of goods sold amounted to $338,000, accounts payable increased by $49,000, and inventories increased by $34,000. How much cash was paid to suppliers?

d. The net book value of buildings increased by $29,000. No buildings were sold, and depreciation expense for the year was $130,000. How much cash was paid to purchase buildings?

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Homework Answers

Answer #1

A) A decrease in account receivable means cash collection was more than new sales made.

Hence cash collection = $560000 + $34000 = $594000

B) a decrease in tax payable means cash paid was more than new tax liability. Hence cash paid = $118000 + $44000

= $162000

C) Increase in inventory means purchase was more than what was sold that is cost of goods sold.

Hence purchase amount = $338000 + $34000 = $372000

Since account payable increased by $49000 it means cash paid was less than purchase made.

Cash paid = $372000 - $49000 = $323000

D) increase in building value means cash paid was more than dividend reduction.

Hence cash paid = $130000 + $29000 = $159000

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Also plz upvote it means a lot ..thank you

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