Gauge Corporation earned revenues of $33 million during 2010 and ended the year with net income of $6 million. During 2010 Gauge collected cash of $24 million from customers and paid cash for all of its expenses plus an additional $1 million on account for amounts payable at December 31, 2009. Answer these questions about Gauges operating results, financial position, and cash flows during 2010:

Requirements
1. How much were Gauges total expenses? Show your work.
2. Identify all the items that Gauge will report on its 2010 income statement. Show each amount.
3. Gauge began 2010 with receivables of $9 million. All sales are on account. What was Gauges receivables balance at the end of 2010? Identify the appropriate financial statement and show how Gauge will report its ending receivables balance in the company’s 2010 annual report.
4. Gauge began 2010 owing accounts payable of $11 million. All expenses are incurred on account. During 2010, Gauge paid $28 million on account. How much in accounts payable did Gauge owe at the end of 2010? Identify the appropriate financial statement and show how Gauge will report accounts payable in its 2010 annual report.