Question

The following selected account balances were taken from XYZ Company's
general ledgers for 2022:

                      January 1, 2022       December 31, 2022
  Inventory                  47,000                56,000
  Accounts payable           50,000                28,000
  Salaries payable            4,000                 9,000
  Investments                69,000                75,000
  Accounts receivable        68,000                35,000
  Land                       58,000                88,000
  Notes payable             120,000                95,000
  Unearned revenue           17,000                25,000
  Common stock              100,000               170,000
  Retained earnings          23,000                35,000

The following information was taken from XYZ Company's 2022 income
statement:

  Sales revenue                   $420,000
  Cost of goods sold               300,000
  Salaries expense                  88,000
  Net income                      $ 32,000

1. Calculate the amount of cash paid to employees for salaries during
2022.

2. Calculate the amount of cash paid to suppliers for purchases of
inventory during 2022.

3. Calculate the amount of cash collected from customers during 2022.

4. Calculate XYZ Company's net cash flow from financing activities for
2022. If your answer is negative, place a minus sign in front of your
answer with no spaces in between (e.g., -1234).

Answer 1

Part 1)

Cash paid for salaries

= opening salaries payable + salaries expense- closing salaries payable

= 4000 + 88000 - 9000

= $ 83000

Thus the correct answer is $ 83000

Part 2)

Cash paid to suppliers = opening account payable + purchases- closing account payable

= 50000 + (56000+300000-47000)-28000

=$331000

Thus the correct answer is $ 331000

Part 3)

Cash collected from customer

= opening account receivable + sales - closing account payable

= 68000 + 420000 - 35000

= $453000

Thus the correct answer is $ 453000

Part 4)

Cash flow from financing activities

= - repayment of note payable + issue of common stock- dividend paid

= - (120000-95000)+(170000-100000)-(23000+32000-35000)

= $25000

Thus the correct answer is cash Inflow from financing activities is $ 25000