The Following Information Is Available for the Arthur Corporation

Question

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The Answer is (a)

\begin{array}{|l|r|}\hline ext { Cash receipts from customers: } & \\hline ext { Sales } & \$ 240,000 \\hline ext { Less: Increase in accounts receivable } & (2,780) \\hline ext { Cash collected from customers } & \$ 237,220 \\hline\end{array}

(b)

\begin{array}{|l|r|}\hline ext { Cash paid for merchandise inventory: } & \\hline ext { Cost of goods sold } & \$ 80,900 \\hline ext { Plus: Increase in inventories } & 11,415 \\hline ext { Less: Increase in accounts payable } & (24,620) \\hline ext { Cash paid for inventories } & \$ 67,695 \\hline\end{array}

(c)

\begin{array}{|l|r|}\hline ext { Payments for income taxes: } & \\hline ext { Income tax expense } & \$ 27,650 \\hline ext { Less: Increase in incometaxes payable } & (525) \\hline ext { Cash paid for income taxes } & \$ 27,125 \\hline\end{array}

(d)Received from sales of long-term investments: $56,400 - $55,900 = $500
(e)

\begin{array}{|l|r|}\hline ext { Received from stock issuance: } & \\hline ext { Increase in common stock } & \$ 21,000 \\hline ext { Increase in additional paid in capital } & \underline{4,000} \\hline ext { Total received from stock issuance } & \$ 25,000 \\hline\end{array}

(f)

\begin{array}{|l|r|}\hline ext { Paid to retire bonds: } & \\hline ext { Bonds payable @ } 12 / 31 / 09 & \$ 66,000 \\hline ext { Bonds payable @ } 12 / 31 / 10 & (48,750) \\hline ext { Cash paid to retire bonds } & \$ 17,250 \\hline\end{array}

$(a) \begin{array}{|l|r|} \hline ext { Cash receipts from customers: } & \ \hline ext { Sales } & \$ 240,000 \ \hline ext { Less: Increase in accounts receivable } & (2,780) \ \hline ext { Cash collected from customers } & \$ 237,220 \ \hline \end{array} (b) \begin{array}{|l|r|} \hline ext { Cash paid for merchandise inventory: } & \ \hline ext { Cost of goods sold } & \$ 80,900 \ \hline ext { Plus: Increase in inventories } & 11,415 \ \hline ext { Less: Increase in accounts payable } & (24,620) \ \hline ext { Cash paid for inventories } & \$ 67,695 \ \hline \end{array} (c) \begin{array}{|l|r|} \hline ext { Payments for income taxes: } & \ \hline ext { Income tax expense } & \$ 27,650 \ \hline ext { Less: Increase in incometaxes payable } & (525) \ \hline ext { Cash paid for income taxes } & \$ 27,125 \ \hline \end{array} (d)Received from sales of long-term investments: $56,400 - $55,900 = $500 (e) \begin{array}{|l|r|} \hline ext { Received from stock issuance: } & \ \hline ext { Increase in common stock } & \$ 21,000 \ \hline ext { Increase in additional paid in capital } & \underline{4,000} \ \hline ext { Total received from stock issuance } & \$ 25,000 \ \hline \end{array} (f) \begin{array}{|l|r|} \hline ext { Paid to retire bonds: } & \ \hline ext { Bonds payable @ } 12 / 31 / 09 & \$ 66,000 \ \hline ext { Bonds payable @ } 12 / 31 / 10 & (48,750) \ \hline ext { Cash paid to retire bonds } & \$ 17,250 \ \hline \end{array}$

The Following Information Is Available for the Arthur Corporation

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