The following information is taken from the general ledger of Robin Limited:

Instructions 

Using the direct method, calculate: 

a. Cash receipts from customers 

b. Cash payments to suppliers 

c. Cash payments for operating expenses 

d. Cash payments for interest expense  

Transcribed Image Text:

1. Sales Accounts receivable, January 1 Accounts receivable, December 31 2. Cost of goods sold Inventory, January 1 Inventory, December 31 Accounts payable, January 1 Accounts payable, December 31 3. Operating expenses Depreciation expense (included in operating expenses) Prepaid expenses, January 1 Prepaid expenses, December 31 Accrued expenses payable, January 1 Accrued expenses payable, December 31 4. Interest expense Interest payable, January 1 Interest payable, December 31 Notes payable, January 1 Notes payable, December 31 $275,000 22,900 37,000 $110,000 9,200 5,900 8,600 6,900 $ 70,000 20,000 3,000 5,500 6,500 4,500 $ 18,000 8,000 4,000 397,000 390,000