Table 16- 1 Table 162 -Referring to Tables 16- 1 and 16- 2, the Cash

question 126

Multiple Choice

Table 16- 1
$\begin{array}{lll}&12 / 31 / 20 \times 6&12 / 31 / 20 \times 5\\\text { Currentassets: }\\\text { Cash } & \$ 24,800 & \$ 17,600 \\\text { Accounts receivable } & 57,600 & 44,800\end{array}$ Table 16.2
$\begin{array}{ll}\text { Sales }&&\$916,800\\\text { Less: Cost of goods sold }&&(391,200) \\\text { Gross profit }&&\$525,600\\\text { Less operating expenses: Wage }\\\text { expense }&\$239,200\\\text { Supply expense } & 20,000 \\\text { Insurance expense } & 19,200 \\\text { Depreciation expense } & 57,600 \\\text { Amortization expense } & 12,000 \\\text { Rent expense } & \underline{33,600} \\&&(381,600) \\\text { Operatingincome } && \$ 144,000 \\\text { Interest expense } && (24,000) \end{array}$
-Referring to Tables 16- 1 and 16- 2, the cash paid for interest by Silver Company in 20X6 was:

• A) $16,000
• B) $22,400
• C) $25,600
• D) $6,400

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