Inferring cash flows from financial statement data Exhibit 5.24 presents data from the financial statements for Heidi's Hide-Out, a bar and Video-game club, with private party rooms for rent Heidi's deals with

• Many employees, to some of whom it has made advances on wages and to some of whom it owes wages for past work;

• Many landlords, to some of whom it has made advance payments and to some of whom it owes rent for past months;

• Many customers, some of whom have paid for special parties not yet held and some of whom have not yet paid for parties already held; and

• Many suppliers of goods, including food and beverages, some of whom Heidi's has paid for orders not yet received and some of whom have delivered goods for which

Heidi's has not yet paid.

Heidi's and its customers, suppliers, and employees settle all transactions with cash, never with noncash assets.

a. Calculate the amount of cash received from retail customers during the current year.

b. Calculate the amount of cash Heidi's paid landlords during the current year for the rental of space.

c. Calculate the amount of cash Heidi's paid employees during the current year.

d. Calculate the amount of cash Heidi's paid suppliers of retail merchandise, which includes food and beverages it sells to retail customers, during the currentyear.

Heidi's Hide-Out Selected Detail from Financial Statements EXHIBIT 5.24 Current Year (Problem 32) Beginning of Year End of Year BALANCE SHEETS Cash . $ 10,000 $22,000 Accounts Receivable from Retail Customers 8,000 8,900 Inventory of Retail Merchandise 11,000 1,000 10,000 Advances to Employees.. 1,500 Advances to Landlords (Prepaid Rent) 5,000 5,600 Advances to Suppliers of Retail Merchandise. Total Assets .. 10,000 10.500 $ 46,500 $57,000 Accounts Payable to Suppliers of Retail Merchandise $8,000 $7,700 Advances from Retail Customers 9,000 10,000 Rent Payable to Landlards Wages Payable to Employees. Shareholders' Equity . Total Liabilities and Shareholders' Equity. 6,000 5,300 2,000 1,800 32,000 21.700 S 46,500 $57,000 INCOME STATEMENT FOR THE YEAR S 120,000 Sales Revenue from Retail Customers . Cost of Retail Merchandise Sold S90,000 Rent Expense.. 33,000 Wage Expense Less: Total Expenses Net Income (Loss) 20,000 S(143,000) S (23,000)