For each of the following items, calculate the cash sources or cash uses that should be recognized

Question:

For each of the following items, calculate the cash sources or cash uses that should be recognized on the statement of cash flows for Baldin Co. for the year ended December 31, 2019:

a. Sales on account (all are collectible) amounted to $560,000, and accounts receivable decreased by $34,000. How much cash was collected from customers?

b. Income tax expense for the year was $118,000, and income taxes payable decreased by $44,000. How much cash was paid for income taxes?

c. Cost of goods sold amounted to $338,000, accounts payable increased by $49,000, and inventories increased by $34,000. How much cash was paid to suppliers?

d. The net book value of buildings increased by $290,000. No buildings were sold, and depreciation expense for the year was $130,000. How much cash was paid to purchase buildings?

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...

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