Question

Practical Company had sales of $315,000 for the year. The company reported accounts receivable of $30,000 at the end of last year and $34,000 at the end of this year. Practical’s cost of goods sold this year was $246,000. In last year’s statement of financial position, the company reported inventory of $49,000 and accounts payable of $33,000. In this year’s statement of financial position, Practical reported inventory of $43,000 and accounts payable of $37,000.
Required:
i. Calculate the amount of cash that Practical Company collected from customers during the year.
ii. Calculate the amount of cash that Practical paid to suppliers for inventory during the year.



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  • CreatedJune 11, 2015
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