Question

Southbend Company had sales of $734,000 for the year. The company reported accounts receivable of $54,000 at the end of last year and $60,000 at the end of this year. Southbend’s cost of goods sold this year was $440,000. In last year’s statement of financial position, the company reported inventory of $62,000 and accounts payable of $32,000. In this year’s statement of financial position, Southbend reported inventory of $66,000 and accounts payable of $38,000.
Required:
i. Calculate the amount of cash that Southbend Company collected from its customers during the year.
ii. Calculate the amount of cash that Southbend paid to its suppliers for inventory during the year.


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  • CreatedJune 11, 2015
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