Company A, reports net sales of $2,200,000, cost of goods sold of $1,000,000, and income tax expense
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Question:
Company A, reports net sales of $2,200,000, cost of goods sold of $1,000,000, and income tax expense of $130,000 for the year ended December 31, Year 2. Selected balance sheet accounts are as follows:
| Company A Selected Balance Sheet Data December 31 | ||||||||||
| Year 2 | Year 1 | Increase (I) or Decrease (D) | ||||||||
| Cash | $ | 140,000 | $ | 175,000 | $ | 35,000 | (D) | |||
| Accounts receivable | 265,000 | 220,000 | 45,000 | (I) | ||||||
| Inventory | 115,000 | 145,000 | 30,000 | (D) | ||||||
| Accounts payable | 110,000 | 117,000 | 7,000 | (D) | ||||||
| Income tax payable | 15,000 | 14,000 | 1,000 | (I) | ||||||
Required:
Calculate cash received from customers, cash paid to suppliers, and cash paid for income taxes.
Expert Answer:
Calculating Cash Flows for Company A We can calculate the cash flows for Company A using the followi... View the full answer
Related Book For 
Intermediate Accounting
ISBN: 978-0470161012
9th Canadian Edition, Volume 2
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield.
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