The Following Statements Represent Several Independent Situations with an Unknown

question 55

Essay

The following statements represent several independent situations with an unknown value:
a_Payments for inventory for the current period are $375,000.Accounts payable on January 1 had a balance of $75,000 and a balance of $89,000 on December 31.Determine the amount of merchandise inventory purchased during the year.
b_Purchases of inventory on account during the current year amount to $275,000.Accounts payable on January 1 had a balance of $36,000 and a balance of $25,200 on December 31.Determine the cash payments to suppliers for purchases of inventory during the current period.
c_Accumulated amortization-equipment had a January 1 balance of $20,500 and a December 31 balance of $17,600.During the current period,equipment with a book value of $50,000 and a cost of $76,000,was sold for $47,500.Determine the current period's amortization expense.
d_Equipment (net_had a January 1 balance of $500,000 and a December 31 balance of $450,000.During the year,equipment costing $36,000 was purchased for cash.The income statement reports a loss on sale of equipment of $15,000.There were no other transactions affecting equipment during the year.Determine the cash received from the sale of the equipment.

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Definitions:

Observed Values

The actual measurements or data collected in an experiment or study.

Predicted Values

The outcomes or values estimated based on a mathematical model or prediction equation.

Y-intercept

The point on a graph where a line intersects the Y-axis, often used to represent the starting value of a relationship in linear equations.

Slope

Measures the steepness or incline of a line, calculated as the ratio of vertical change to horizontal change between any two points on the line.