For Each of the Following Separate Cases,use the Information Provided

question 118

Essay

For each of the following separate cases,use the information provided to calculate the missing cash inflow or cash outflow:
(a)
$$\begin{array}{|l|l|}\hline\text { Accounts receivable balarices: }\\\hline \text { Beginning of year } & \$ 60,000 \\\hline \text { End of year } & 57,000 \\\hline \text { Sales revenue (all on credit) } & 375,000 \\\hline \text { Cash received frem customers } & \$\underline{\quad\quad} \\\hline \end{array}$$
(b)
$$\begin{array}{|l|l|}\hline\text { Accounts payable balances: }\\\hline \text { Beginning of year } & \$ 42,000 \\\hline \text { End of year } & 45,000 \\\hline \text { Merchandise inventory balances: } & \\\hline \text { Beginning of year } & 50,000 \\\hline \text { End of year } & 47,500 \\\hline \text { Cost of goods sold } & 250,000 \\\hline \text { Cash paid for merchandise inventory } & \$\underline{\quad\quad} \\\hline \end{array}$$
(c)
$\begin{array}{|l|r|}\hline \text { Interest payable balances: } & \\\hline \text { Beginning of year } & \$ 7,500 \\\hline \text { End of year } & 9,200 \\\hline \text { Interest expense } & 35,000 \\\hline \text { Cash paid for interest } & \$\underline{\quad\quad} \\\hline \end{array}$

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Definitions:

Straight-Line Depreciation

A method of allocating the cost of a tangible asset over its useful life in equal installments, simplifying accounting computations.

Salvage Value

The projected sale proceeds of an asset at the conclusion of its period of utility.

Payback Period

The length of time it takes for an investment to generate enough cash flow to recoup its original cost.

Accounting Rate of Return

The accounting rate of return (ARR) is an accounting metric that measures the profitability of an investment by dividing the average annual profit by the initial investment cost.