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

question 140

Essay

For each of the following separate cases,use the information provided to calculate the missing cash inflow or cash outflow:
(a)
$\begin{array}{|l|r|}\hline \text { Accounts receivable balances: } & \\\hline \text { Beginning of year } & \$ 60,000 \\\hline \text { End of year } & 57,000 \\\hline \text { Sales revenue (all on credit) } & 375,000 \\\hline \text { Cash received from customers } & \$ \\\hline\end{array}$

(b)
$\begin{array}{|l|r|}\hline \text { Accounts payable balances: } & \\\hline \text { Beginning of year } & \$ 42,000 \\\hline \text { End of year } & 45,000 \\\hline \text { Merchandise inventory balances: } & \\\hline \text { Beginning of year } & 50,000\\\hline \text { End of year } & 47,500\\ \hline \text { Cost of goods sold } & 250,000\\\hline \text { Cash paid for merchandise inventory } & \$ \\\hline\end{array}$
(c)
$\begin{array}{|l|r|}\hline \text { Interest payable balances: } & \\\hline \text { Beginning of year } & \$ 7,500 \\\hline \text { End of year } & 9,200 \\\hline \text { Interest expense } & 35,000 \\\hline \text { Cash paid for interest } & \$ \\\hline\end{array}$

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Definitions:

Accumulated Depreciation

This refers to the total amount of a company's asset cost that has been expensed through depreciation over the asset's life, reducing its initial cost on the balance sheet.

Assets Sold

Items or properties a company has disposed of, either by selling, trading, or other means of transfer.

Sum-Of-The-Years'-Digits Depreciation

A method of depreciation that results in a more accelerated write-off of the asset than the straight-line method, basing the expense on a fraction that decreases year by year.