For Each of the Following Separate Cases, Use the Information

question 99

Essay

For each of the following separate cases, use the information provided to calculate the missing cash inflow or cash outflow using the direct method.
$\begin{array} { l | l | r } \text { (a) } & \text { Accounts receivable balances: } & \\\hline & \text { Beginning of year } \ldots \ldots \ldots \ldots \ldots \ldots \ldots \ldots \ldots & \$ 60,000 \\\hline & \text { End of year } \ldots \ldots \ldots \ldots \ldots \ldots \ldots \ldots \ldots \ldots & 63,000 \\\hline & \text { Sales revenue (all on credit) } \ldots \ldots \ldots \ldots \ldots \ldots & 395,000 \\\hline & \text { Cash received from customers } & \$\underline{\quad\quad} \\\hline & & \\ \hline\end{array}$
(b)
$\begin{array}{|l|c|}\hline \text { Accounts payable balances: } & \\\hline \text { Beginning of year} & \$ 42,000 \\\hline \text { End of year } & 31,000 \\\hline \text { Merchandise inventory balances: } & \\\hline \text { Beginning of year } & 50,000 \\\hline\text { End of year } & 52,500 \\\hline \text { Cost of goods sold. } & 250,000 \\\hline \text { Cash } &\$ \underline{\quad\quad}\\ \hline\end{array}$

(c)
$\begin{array}{|l|c|}\hline\text { Interest payable balances: }\\\hline \text { Beginning of year } & \$ 7,500 \\\hline \text { End of year } & 8,200 \\\hline \text { Interest expense } & 31,000 \\\hline \text { Cash paid for interest } & \$ \underline{\quad\quad} \\\hline\end{array}$

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Definitions:

Foreign Buyer

An individual or corporation from another country that purchases goods or services from a domestic seller.

Management Accounting

The branch of accounting focused on providing financial data and analysis to managers within organizations to aid in decision-making.

Alternatives

Different options or choices available in a decision-making process.

Split-off Point

The stage in a process costing system where products that have been produced jointly up to a certain point are then subsequently processed or sold separately.