Partial Balance Sheets and Additional Information Are Listed Below for Ensign

question 40

Essay

Partial balance sheets and additional information are listed below for Ensign Company.
Additional information for 2009:
Net income was $170,000.
Depreciation expense was $30,000.
Sales totaled $400,000.
Cost of goods sold totaled $145,000.
Required:
Calculate the amount of cash paid to merchandise suppliers during 2009.
Ensign Company
Partial Balance Sheets
as of December 31
$\begin{array} { l r r } \text { Assets } & \mathbf { 2 0 0 9 } & \mathbf { 2 0 0 8 } \\ \text { Cash } & \$ 20,000 & \$ 40,000 \\ \text { Accounts receivable } & 90,000 & 60,000 \\ \text { Inventory } & 20,000 & 25,000 \\ \text { Liabilities } & & \\ \text { Accounts payable } & \$ 72,000 & \$ 58,000 \end{array}$

---

Definitions:

Concise Messages

Communication that is brief yet comprehensive, conveying essential information without superfluous details.

Jargon

Specialized language used by a particular profession or group that may be difficult for outsiders to understand.

Precise Words

Language that is clear and exact, with no ambiguity or vagueness.

Concrete Messages

Communication that is clear, specific, and detailed, making it easily understood by the receiver.