For the fiscal year just completed, Dollar Sine Enterprises had the following summary information available concerning operating

Question:

For the fiscal year just completed, Dollar Sine Enterprises had the following summary information available concerning operating activities. The company had no investing or financing activities this year.

Sales of merchandise to customers on credit .........$307,400

Sales of merchandise to customers for cash .......... 88,250

Cost of merchandise sold on credit ............ 200,000

Cost of merchandise sold for cash ............. 57,400

Purchases of merchandise from suppliers on credit ...... 233,700

Purchases of merchandise from suppliers for cash ...... 48,100

Collections from customers on accounts receivable ...... 321,000

Cash payments to suppliers on accounts payable ........ 293,600

Operating expenses (all paid in cash) ............ 93,500

Required

A. Determine the amount of:

1. Net income for the year.

2. Cash flow from operations for the year (direct format).

B. Indicate the direction and amounts by which each of these accounts changed during the year.

1. Accounts receivable

2. Merchandise inventory

3. Accounts payable

C. Using your results above, prepare the operating activities section of the statement of cash flows (indirect format).

Accounts Payable
Accounts payable (AP) are bills to be paid as part of the normal course of business.This is a standard accounting term, one of the most common liabilities, which normally appears in the balance sheet listing of liabilities. Businesses receive... Accounts Receivable
Accounts receivables are debts owed to your company, usually from sales on credit. Accounts receivable is business asset, the sum of the money owed to you by customers who haven’t paid.The standard procedure in business-to-business sales is that...