Refer to Exhibit 6.18, which provides items from the financial statements of Infotech Corporation. Exhibit 6.18. Sales.

Question:

Refer to Exhibit 6.18, which provides items from the financial statements of Infotech Corporation.

Exhibit 6.18.

Sales. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 14,508

Cost of Goods Sold . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (11,596)

Depreciation Expense. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (114)

Other Expenses, Including Salaries and Wages Expense . . . . . . (2,276)

Income Taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (210)

Net Income. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 312

DATA FROM BEGINNING- AND END-OF-YEAR BALANCE SHEETS

Accounts Receivable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $782 Decrease

Inventories . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 66 Decrease

Prepayments for Other Costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . 102 Decrease

Accounts Payable for Inventories. . . . . . . . . . . . . . . . . . . . . . . . . 90 Increase

Current Liabilities for Wages and Salaries Payable. . . . . . . . 240 Decrease


a. How much cash did Infotech pay during the year to its suppliers of goods?

b. How much cash did Infotech pay during the year to its employees and suppliers of other services?


Financial Statements
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial...
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Financial Accounting An Introduction to Concepts, Methods and Uses

ISBN: 978-1133591023

14th edition

Authors: Roman L. Weil, Katherine Schipper, Jennifer Francis

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