07-11-2010, 01:02 PM
Item 1)..
Dolan Company's income statement showed revenues of $250,000 and operating expenses of $160,000. Accounts receivable decreased by $60,000 and accounts payable increased by $40,000 during the year.
Instructions
Compute (a) cash receipts from customers and (b) cash payments for operating expenses using the direct method.
A)$__________ ANSWER
B) $__________ANSWER
Item 2
Banner Company had total operating expenses of $140,000 in 2008, which included Depreciation Expense of $20,000. Also, during 2008, prepaid expenses increased by $5,000 and accrued expenses decreased by $6,700.
Instructions
Calculate the amount of cash payments for operating expenses in 2008 using the direct method.
$__________ ANSWER.
Item 3
The general ledger of Lopez Company provides the following information
End of Year Beginning of Year
Accounts Receivable $ 55,000 $ 94,000
Inventory 350,000 210,000
Accounts Payable 40,000 65,000
The company's net sales for the year was $2,100,000 and cost of goods sold amounted to $1,500,000.
Instructions
Compute the following a) Cash Receipts from customers b) cash payments to suppliers
A)$__________ ANSWER
B) $__________ANSWER
Dolan Company's income statement showed revenues of $250,000 and operating expenses of $160,000. Accounts receivable decreased by $60,000 and accounts payable increased by $40,000 during the year.
Instructions
Compute (a) cash receipts from customers and (b) cash payments for operating expenses using the direct method.
A)$__________ ANSWER
B) $__________ANSWER
Item 2
Banner Company had total operating expenses of $140,000 in 2008, which included Depreciation Expense of $20,000. Also, during 2008, prepaid expenses increased by $5,000 and accrued expenses decreased by $6,700.
Instructions
Calculate the amount of cash payments for operating expenses in 2008 using the direct method.
$__________ ANSWER.
Item 3
The general ledger of Lopez Company provides the following information
End of Year Beginning of Year
Accounts Receivable $ 55,000 $ 94,000
Inventory 350,000 210,000
Accounts Payable 40,000 65,000
The company's net sales for the year was $2,100,000 and cost of goods sold amounted to $1,500,000.
Instructions
Compute the following a) Cash Receipts from customers b) cash payments to suppliers
A)$__________ ANSWER
B) $__________ANSWER
