Question

The following information is available for the Goodman Company:

Goodman Company
Balance Sheet
December 31, 2018
ASSETS
	Current Year	Prior Year
Cash	$125,000	$100,000
Accounts Receivable	515,000	500,000
Allowance for Doubtful Accounts	(70,150)	(60,000)
Inventory	660,000	500,000
Prepaid Expenses	80,000	72,000
Equipment	892,000	900,000
Less: Accumulated Depreciation	(460,000)	(452,500)
LIABILITIES
Accounts Payable	430,000	370,000
Accrued Expenses	250,000	230,000
Income Tax Payable	58,000	50,000

Goodman Company
Income Statement
For Year Ending December 31, 2018
Sales (all sales are on credit)	$780,000
Cost of Goods Sold	450,000
Gross Profit	$330,000
Operating Expenses:
Bad Debt Expense	25,150
Depreciation Expense	11,500
Other Operating Expenses	160,000
Loss on Sale of Equipment	1,500
Income Tax Expense	43,000

Determine the amount of cash flow associated with each of the following items:

1.	Cash receipts from customers.
2.	Cash payments to suppliers.
3.	Cash payments for other operating expenses.
4.	Cash received from sale of equipment (no equipment purchases were made during the year and only one sale of equipment occurred).
5.	Cash paid for income taxes.

Answer 1