Question

Question 6 The following are independent situations.

Sales = $650,500; Accounts receivable increased by $27,500. Calculate cash receipts from sales. Cash receipts from sales $Enter cash receipts from sales in dollars

Cost of goods sold = $430,000; inventory decreased by $75,000; accounts payable decreased by $28,500. Calculate cash payments for purchases. Cash payments for purchases $Enter cash payments for purchases in dollars

The Income statement shows $12,500 in income taxes. The balance sheet shows an increase in taxes payable of $1,500. Calculate the cash paid for income taxes. Cash paid for income taxes $Enter cash paid for income taxes in dollars

Operating expenses total $75,750; Depreciation expense = $37,200; Prepaid expenses increased by $15,400; Accrued wages decreased by $10,600. Calculate cash payments for operating expenses. Cash payments for operating expenses $Enter cash payments for operating expenses in dollars Click if you would like to Show Work for this question: Open Show Work

Answer 1

Solutions:

Cash Receipts from sales
Particulars	Amount
Sales	$6,50,500
Less: Increase in Accounts Receivable	$27,500
Cash receipts from sales	$6,23,000
Computation of cash payment for Purchases
Particulars	Amount
Cost of Goods sold	$4,30,000
Less: Decrease in Inventory	$75,000
Add: Decrease in Accounts payable	$28,500
Cash payment for purchases	$3,83,500
Computation of cash Paid for income taxes
Particulars	Amount
Income tax expense	$12,500
Less: Increase in taxes Payable	$1,500
Cash payment for Operating expenses	$11,000
Computation of cash Payment for Operating Expenses
Particulars	Amount
Operating expenses	$75,750
Less: Depreciation	$37,200
Cash operating expenses	$38,550
Add: Increase in Prepiad expenses	$15,400
Add: Decrease in Accrued Wages	$10,600
Cash payment for Operating expenses	$64,550