The computation of cash provided by operating activities requires analysis of the noncash current asset and current liability accounts. Determine the missing amounts for each of the following independent cases:
Case 1
Accounts receivable, beginning of year $150,000
Accounts receivable, end of year 100,000
Credit sales for the year 175,000
Cash sales for the year 60,000
Write-offs of uncollectible accounts 35,000
Total cash collections for the year (from
cash sales and collections on account) ?
Case 2
Inventory, beginning of year $ 80,000
Inventory, end of year 55,000
Accounts payable, beginning of year 25,000
Accounts payable, end of year 15,000
Cost of goods sold 175,000
Cash payments for inventory (assume all
purchases of inventory are on account) ?
Case 3
Prepaid insurance, beginning of year $ 17,000
Prepaid insurance, end of year 20,000
Insurance expense 15,000
Cash paid for new insurance policies ?
Case 4
Income taxes payable, beginning of year $ 95,000
Income taxes payable, end of year 115,000
Income tax expense 300,000
Cash payments for taxes ?