Balance Sheet June $30$th$,$ Year $5$

Assets

Cash $10,000$

Accounts receivables $34,000$

Inventory $60,000$

Prepaid Insurance $,4,000$

Capital Assets $,200,000$

Accumulated depreciation $(40,000)$

Liabilities and Equity

Total Assets $268,000$ Retained Earnings $64,000$

The following are all transactions that happened during Year $6$:

Made all sales on account of $$246,500$

Collected accounts receivable of $$243,600$

Purchased merchandise on account of $$134,000$

Determined cost of goods sold was $$140,000$

Paid accounts payable $($for merchandise purchased$)$ of $$143,000$

Paid wages to employees of $$52,500$

Accrued wages expense $($and wages payable$)$ of $$1,500$ at June $30$th$,$ Year $6.$

Paid insurance premium of $$18,000$ to extend coverage for three years.

Allocated $$5,000$ of prepaid insurance to insurance expense.

Recorded Year $6$ total income tax expense $($and income tax payable$)$ of $$13,000$

Paid income taxes to government of $$11,500($this represents the final portion of Year $5$ taxes and initial installments of Year $6$ taxes$).$

Depreciation for the year $$10,000$

Required $1$: What is the amount of Cash received from customers? $ $243600$

Required $2$: How much is the net income $($loss$)$ of the year $6?$ $

$26000($incorrect$)$

Required $3$: What is the amount of cash generated $($used$)$ by accounts receivables? $

$2900($incorrect$)$

Required $4$: What is amount of cash generated $($used$)$ by Operations in Year $6?$ $

$18600($correct$)$

Required $5$: What is ending balance of Cash at the end of Year $6?$ $$28600($correct$)$

Required $6$: What is ending balance of Accounts Receivables at the end of Year $6?$ $$36900$ Required $7$: What is ending balance of Retained Earnings at the end of Year $6?$ $

$90000($correct$)$

Required $7$: What is ending balance of Retained Earnings at the end of Year $6?$ $