Nitrogen Inc. had the following events occur in 2023

1. Taxes Payable on January 1 was $12,400 and on December 31 was $13,600. Income Tax Expense on the income statement was reported at $39,000.

2. Cost of goods sold on the income statement was reported at $50,000. Accounts Payable increased $5,000 and Inventory decreased $7,000.

3. Sales were reported on the income statement at $100,000. Accounts Receivable increased $5,700. 

4. Interest Revenue on the income statement was reported at $12,000. Interest Receivable decreased $3,600.

Calculate the cash receipts or cash disbursements for each event.

Answer rating: 100% (QA)

Answer To calculate the cash receipts or cash disbursements for each event we need to consider the c... View the full answer