Question

Each of the following is an independent situation.
Case 1
Accounts receivable, beginning balance ............ $250,000
Accounts receivable, ending balance .............. 200,000
Credit sales for the year ................... 275,000
Cash sales for the year .................. 160,000
Uncollectible accounts written off .............. 135,000
Total cash collections for the year .............. ?
Case 2
Inventory, beginning balance ................ $180,000
Inventory, ending balance .................. 155,000
Accounts payable, beginning balance ............. 125,000
Accounts payable, ending balance ............... 115,000
Cost of goods sold ..................... 275,000
Cash payments for inventory (assume that all ......... ?
purchases are on account)
Case 3
Prepaid insurance, beginning balance ............ $27,000
Prepaid insurance, ending balance .............. 30,000
Insurance expense ..................... 25,000
Cash paid for new insurance ................. ?
Case 4
Interest payable, beginning balance ............. $105,000
Interest payable, ending balance .............. 125,000
Interest expense ..................... . 300,000
Cash payments for interest .................. ?
Case 5
Income taxes payable, beginning balance ............ $55,000
Income taxes payable, ending balance ............ 75,000
Income tax expense ................... 100,000
Cash payments for income taxes .............. ?

Required
Determine the missing amount for each individual case.



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  • CreatedMarch 11, 2015
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