The following information is taken from the general ledger of Robinson Limited:
1. Sales revenue...................................................................................$275,000
Accounts receivable, January 1....................................................................22,900
Accounts receivable, December 31...............................................................37,000
2. Cost of goods sold............................................................................$110,000
Inventory, January 1.................................................................................9,200
Inventory, December 31.............................................................................5,900
Accounts payable, January 1........................................................................8,600
Accounts payable, December 31...................................................................6,900
3. Operating expenses...........................................................................$ 70,000
Depreciation expense (included in operating expenses) ......................................20,000
Prepaid expenses, January 1........................................................................3,000
Prepaid expenses, December 31....................................................................5,500
Accrued expenses payable, January 1.............................................................6,500
Accrued expenses payable, December 31.........................................................4,500
4. Interest expense................................................................................$ 18,000
Interest payable, January 1..........................................................................4,000
Interest payable, December 31.....................................................................4,000
Bonds payable, January 1........................................................................395,000
Bonds payable, December 31....................................................................397,000
5. Gain on fair value adjustment.................................................................$ 6,000
Trading investments, January 1.....................................................................8,000
Trading investments, December 31...............................................................17,000
Instructions
Using the direct method, calculate:
(a) Cash receipts from customers
(b) Cash payments to suppliers
(c) Cash payments for operating expenses
(d) Cash payments for interest expense
(e) Cash payments for trading investments