In: Accounting
(Use DIRECT METHOD and show all calculations):
Washington Company |
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Balance sheet |
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December 31, 20X3 and 20X2 |
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12/31/X3 |
12/31/X2 |
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Current Assets |
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Cash |
$4,600 |
$3,100 |
Accounts Receivable |
$9,500 |
$7,900 |
Supplies |
$1,200 |
$2,100 |
Inventory |
$17,500 |
$18,600 |
Prepaid Insurance |
$1,400 |
$1,000 |
Total Current Assets |
$34,200 |
$32,700 |
Long-Term Assets |
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Fixed Assets |
$71,000 |
$58,000 |
Accumulated Depreciation |
($30,400) |
($26,500) |
Patent |
$6,000 |
$7,000 |
Total Long-term Assets |
$46,600 |
$38,500 |
Total Assets |
$80,800 |
$71,200 |
Current Liabilities |
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Accounts Payable |
$6,100 |
$4,900 |
Wages Payable |
$2,200 |
$2,600 |
Interest Payable |
$800 |
$1,000 |
Taxes Payable |
$2,300 |
$1,500 |
Total Current Liabilities |
$11,400 |
$10,000 |
Long-term Liabilities: Bonds Payable |
$20,300 |
$24,000 |
Total Liabilities |
$31,700 |
$34,000 |
Stockholders Equity: |
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Common Stock |
$22,700 |
$20,000 |
Retained Income |
$26,400 |
$17,200 |
Total Stockholders Equity |
$49,100 |
$37,200 |
Total Liabilities and Stockholders Equity |
$80,800 |
$71,200 |
Washington Company |
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Income Statement |
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For the Year Ended December 31, 20X3 |
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Sales |
$147,500 |
Cost of Goods Sold |
($63,800) |
Gross Profit |
$83,700 |
Less Operating Expenses: |
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Wage Expense |
$40,200 |
Supply Expense |
$3,600 |
Insurance Expense |
$3,000 |
Depreciation Expense |
$3,900 |
Amortization Expense |
$1,000 |
Rent Expense |
$400 |
Operating Expense |
$26,600 |
Interest Expense |
($2,600) |
Income before taxes |
$24,000 |
Income Tax Expense |
($10,800) |
Net Income |
$13,200 |
Answer the following Questions
a) Using indirect method, compute the net cash used / provided by operating activities? (Use the proper format of indirect method) |
b) What was the cash collected from customers by Washington Company in 20X3? |
c) How much inventory did Washington Company purchase in 20X3? |
d) What was the cash paid to supplies of inventory by Washington Company in 20X3? |
e) What was the cash paid to employees by Washington Company in 20X3? |
f) What was the cash paid for supplies by Washington Company in 20X3? |
Show all calculations for (a) to (f) in details use methods as instructed in question..
I am not aware, sub question is from A to F, kindly answer all.. Appreciate your help.. Thks
a)
Cash Flow Statement | ||||
Indirect Method | ||||
Cash flow from Operating Activities | ||||
Net Income | $ 13,200 | |||
Adjustments | ||||
Depreciation | $ 3,900 | |||
Amortization | $ 1,000 | |||
Change In current assets & Liabilities | ||||
Increase in Accounts Receivable | $ (1,600) | =7900-9500 | ||
Decrease in Supplies | $ 900 | =2100-1200 | ||
Decrease in Inventories | $ 1,100 | =18600-17500 | ||
Increase in Prepaid Insurance | $ (400) | =1000-1400 | ||
Increase in Accounts payable | $ 1,200 | =6100-4900 | ||
Decrease in Wages Payable | $ (400) | =2200-2600 | ||
Decrease in Interest Payable | $ (200) | =800-1000 | ||
Increase in Taxes payable | $ 800 | =2300-1500 | ||
Total Adjustments | $ 6,300 | |||
Net Cash from operating activities | $ 19,500 |
b.
Cash Collected from Customers = $147500 + 7900 - 9500 = $145900
c.
Purchase of Inventory = $63800 + 17500 - 18600 = $62700
d.
Cash Paid to suppliers of inventory = $62700+4900-6100 = $61500
e.
Cash paid to employees = $40200 + 2600 - 2200 = $40600
f.
Cash paid for Supplies = $3600 + 1200 - 2100 = $2700