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Exercise 12-16B Direct: Computing cash flows LO P5 Case X: $880,000 36,000 49,680 Case Y: Compute cash received from customers: Sales Accounts receivable, Beginning balance Accounts receivable, Ending balance Compute cash paid for rent Rent expense Rent payable, Beginning balance Rent payable, Ending balance Compute cash paid for inventory Cost of goods sold Inventory, Beginning balance Accounts payable, Beginning balance Inventory, Ending balance Accounts payable, Ending balance $144,500 8,250 7,260 Case z: $506,000 156,860 65,881 128,625 81,692
For each of the above three separate cases, use the information provided about the current-year operations of Sahim Company to compute the required cash flow information. Assume all purchases and sales of inventory are on credit
Case X: Case Y: Case 2: Cash received from customers Cash paid for rent Cash paid for inventory

Sagot :

abiolataiwo2015

Answer:

Case X: Cash received from customers $866,320

Case Y: Cash paid for rent $145,490

Case Z: Cash paid for Inventory $461,954

Explanation:

Compute for the required cash flow :

Case X:

Sales revenue $880,000

Add Accounts receivable, Beg. bal $36,000

Less Accounts receivable, End. bal($49,680)

Cash received from customers $866,320

Case Y:

Rent expense $144,500

Add Rent payable, Beg. bal $8,250

Less Rent payable, End. bal ($7,260)

Cash paid for rent $145,490

Case Z:

Cost of goods sold$ $506,000

Add Inventory, End. bal $128,625

Less Inventory, Beg. ($156,860)

Cost of goods purchased $477,765

($506,000+$128,625-$156,860)

Less increase in accounts payable($15,811)

($81,692-$65,881)

Cash paid for Inventory $461,954

($477,765-$15,811)

Therefore the required cash flow for the three cases are:

Case X: Cash received from customers $866,320

Case Y: Cash paid for rent $145,490

Case Z: Cash paid for Inventory $461,954

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