Question

The following information applies to Change Corporation:
Change Corporation
Income Statement
For the Year Ended December 31, 2010
Sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $(55,000)
Cost of goods sold . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (17,250)
Gross margin . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37,750
Rent expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (5,750)
Net income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $(32,000)
1. Accounts receivable started the year with a balance of $1,050 and ended the year with a balance of $2,250.
2. The beginning balance in accounts payable (to vendors) was $650, and the ending balance was $1,550. Inventory was $1,000 less at the end of the year than it was at the beginning of the year.
3. The company started the year with $2,000 of prepaid rent and ended the year with $1,500 of prepaid rent.
Determine the following cash flows:
a. Cash collected from customers for sales during the year
b. Cash paid to vendors for inventory during the year
c. Cash paid for rent during theyear


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  • CreatedSeptember 01, 2014
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