Question 2

Using the following information, you will need to answer the questions below.

Account	2019	2020
Inventory	46,700	42,100
General Expenses		8,200
Cost of Sales		116,200
Advertising Expense		6,500
Accounts Receivable	39,200	42,500
Wages Payable	6,200	7,800
Insurance Expense		8,000
Depreciation Expenses		15,900
Prepaid Advertising	900	1,200
Interest Income		9,700
Accounts Payable	21,400	18,700
Doubtful Debts Expense		5,200
Interest Expense		12,600
Interest Receivable	200	600
Tax Expense		16,900
Sales Income		263,800
Tax Payable	5,200	4,600
Interest Payable	2,800	3,100
Wages Expense		51,300
Prepaid Insurance	900	400

Required:

Answer the following questions (you must show your calculations for each answer):

(10 Marks)

1. Calculate the cash received from customers

2. Calculate the purchases figure

3. Calculate the cash paid for purchases

4. Calculate the cash paid for expenses

5. Calculate the cash received from interest income

6. Calculate the cash paid for interest expense

7. Calculate the cash paid for tax expense