College Television Company had supplies on its balance sheet at December 31, 2010, of $20,000. The income

Question:

College Television Company had supplies on its balance sheet at December 31, 2010, of $20,000. The income statement for 2011 showed supplies expense of $50,000. The balance sheet at December 31, 2011, showed supplies of $25,000. If no supplies were purchased on account (all were cash purchases), how much cash did College Television Company spend on supplies during 2011? How would that cash outflow be classified on the statement of cash flows?

Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...