For Each of the Following Independent Cases, Use the Information

question 23

Essay

For each of the following independent cases, use the information provided to calculate the missing cash inflow or cash outflow:
(a.)
$$\begin{array} { | l | r | } \hline \text { Interest payable, begirning-year } & \$ 4,200 \\\hline \text { Interest expense } & \mathbf { 2 6 , 7 0 0 } \\\hline \text { Interest payable, year-end } & \mathbf { 3 , 0 0 0 } \\\hline \text { Cash paid for interest } & \$---- \\\hline\end{array}$$ (b.)
$$\begin{array} { | l | r | } \hline \text { Prepaid insurarice, begirring of year } & \$ 7,000 \\\hline \text { Irsurrance expense } & 16,800 \\\hline \text { Prepaid insurance, year-end } & 3,400 \\\hline \text { Cash paid for insurance } & \$--- \\\hline\end{array}$$ (c.)
$$\begin{array} { | l | r | } \hline \text { Interest receivable, begirning of year } & \$8 0 0 \\\hline \text { Interest reverue } & 12,600 \\\hline \text { Interest receivable, year-end } & 1,200 \\\hline \text { Cash received for interest } & \$--- \\\hline\end{array}$$ (d.)
$$\begin{array} { | l | r | } \hline \text { Accourits payable, begirning of year } & \$ 60,000 \\\hline \text { Cost of goods sold } & 244,000 \\\hline \text { Mercharndise irventory, begirning of year } & 35,000 \\\hline \text { Merchardise irventory, year-end } & 40,500 \\\hline \text { Accourts payable, year-end } & 64,800 \\\hline \text { Cash paid for merchardise } & \$--- \\\hline\end{array}$$

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Definitions:

Franchise Relationships

Legal and commercial bonds formed between a franchisor and franchisee, where the franchisor licenses its trade name and operations model to the franchisee.

Federal Trade Commission's Franchise Rule

A regulation established by the FTC that requires franchisors to provide all potential franchisees with a disclosure document containing important information about the franchise.

Material Facts

Important information that could influence decisions or outcomes in legal, financial, or other professional contexts.

Federal Antitrust Laws

Laws created by the federal government to promote competition among businesses and prevent monopolies or unfair business practices that harm consumers.