Selected Balances from Amplec Company's Records Are as Follows $\text { December } 31$

question 50

Essay

Selected balances from Amplec Company's records are as follows:
$\text { December } 31$
$\begin{array}{|l|r|r|}\hline & \text { Year 1 } & \text { Year 2 } \\\hline \text { Merchandise inventory } & 6,500 & 4,990 \\\hline \text { Accounts payable } & 17,200 & 12,560 \\\hline \text { Wages payable } & 2,200 & 1,400 \\\hline \text { Accounts receivable } & 22,000 & \underline{15,000} \\\hline \text { Total assets } & \$ 47,900 & \$ 33,950 \\\hline\\\hline \text { Sales } & & 153,000 \\\hline \text { Cost of goods sold } & & 54,000 \\\hline \text { Salaries expense } & & 42,000 \\\hline \text { Other expense } & & 6,000 \\\hline \text { Profit } & & \$ 51,000\\\hline\end{array}$ Calculate the following for Year 2
(a)Cash payments made for merchandise.
(b)Cash receipts from customers.
(c)Cash payments for wages.

---

Definitions:

Efficiency

The optimal allocation of resources to maximize the production of goods and services.

Quota

A government-imposed trade restriction that limits the quantity or monetary value of goods that can be imported or exported during a specific time period.

Imports

Commodities or offerings sourced from outside the country and brought in for commercial sale or personal use.

European Union

A political and economic union of 27 European countries that participate in a standardized legal and regulatory system.