Akash M

verified

This problem has been solved

100% free to try

Question

Based on the following transactions, answer the following questions. i. Purchased inventory with a cost of $20,600 on account. ii. Sales on account to customers totalled $56,600. iii. Payments made to employees for wages totalled $14,000. iv. Cash collections from customers settling their accounts totalled $39,100. v. Invoice received from the utility company for $5,400 is due in 30 days. vi. Payments totalling $15,600 were made to suppliers to settle part of the balance owing to them. vii. Received a deposit of $3,900 from a customer for goods to be delivered next month. (a) Calculate the revenues, expenses, net income that would be reported on the cash basis. (Enter loss amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Revenues $ Expenses $ Net Income/(Loss) $

          Based on the following transactions, answer the following questions.
i. Purchased inventory with a cost of $20,600 on account.
ii. Sales on account to customers totalled $56,600.
iii. Payments made to employees for wages totalled $14,000.
iv. Cash collections from customers settling their accounts totalled $39,100.
v. Invoice received from the utility company for $5,400 is due in 30 days.
vi. Payments totalling $15,600 were made to suppliers to settle part of the balance owing to them.
vii. Received a deposit of $3,900 from a customer for goods to be delivered next month.
(a)
Calculate the revenues, expenses, net income that would be reported on the cash basis. (Enter loss amounts using either a negative
sign preceding the number e.g. -45 or parentheses e.g. (45).)
Revenues
$
Expenses
$
Net Income/(Loss)
$

Show more…

Based on the following transactions, answer the following questions.
i. Purchased inventory with a cost of 20,600 on account.
ii. Sales on account to customers totalled56,600.
iii. Payments made to employees for wages totalled 14,000.
iv. Cash collections from customers settling their accounts totalled39,100.
v. Invoice received from the utility company for 5,400 is due in 30 days.
vi. Payments totalling15,600 were made to suppliers to settle part of the balance owing to them.
vii. Received a deposit of 3,900 from a customer for goods to be delivered next month.
(a)
Calculate the revenues, expenses, net income that would be reported on the cash basis. (Enter loss amounts using either a negative
sign preceding the number e.g. -45 or parentheses e.g. (45).)
Revenues
Expenses
Net Income/(Loss)

Added by Aimee C.

Horngren’s Cost Accounting

Srikant M. Datar, Madhav V. Rajan 16th Edition

Instant Answer

Solved by Expert Akash M

06/08/2023

Step 1

- The sales on account to customers totaled $56,600. - The cash collections from customers settling their accounts totaled $39,100. - The deposit received from a customer for goods to be delivered next month is $3,900. - Therefore, the total revenues on the cash Show more…

Show all steps

lock

Thanks for your feedback!

Based on the following transactions, answer the following questions. i. Purchased inventory with a cost of $20,600 on account. ii. Sales on account to customers totaled $56,600. iii. Payments made to employees for wages totaled $14,000. iv. Cash collections from customers settling their accounts totaled $39,100. v. Invoice received from the utility company for $5,400 is due in 30 days. vi. Payments totaling $15,600 were made to suppliers to settle part of the balance owing to them. vii. Received a deposit of $3,900 from a customer for goods to be delivered next month. (a) Calculate the revenues, expenses, net income that would be reported on the cash basis. Enter loss amounts using either a negative sign preceding the number (e.g. -45) or parentheses (e.g. (45)). Revenues Expenses Net Income/(Loss)

Play audio

Feedback

Powered by NumerAI

Akash M and 61 other subject Principles of Accounting educators are ready to help you.

Ask a new question

Labs

Want to see this concept in action?

NEW

Explore this concept interactively to see how it behaves as you change inputs.

View Labs

Recommended Videos

Recommended Textbooks

Transcript

00:01 Hello, to determine the net cash provided by the operating activities, investing activities, and financing activities, we need to analyze the changes in the balance sheet accounts and consider the given transitions.

00:12 Let's calculate each component step by step.

00:16 Net cash provided by operating activities.

00:28 Net cash provided by operating activities is derived using the indirect method, which starts with the net income and adjusted for non -cash items and changes in the working capital.

00:41 Net income is not provided in the given information, but we know that there was a cash dividend of $40 ,000 charged to retained earnings.

00:53 This means that the net income for the year should be $40 ,000 less than the increase in the retained earnings.

01:00 So, net income will equal to the increase in the retained earnings less cash dividends.

01:20 If we substitute the values, it will be $32 ,000 less $40 ,000.

01:27 It will be $8 ,000.

01:36 Depreciation expense is equal to $72 ,000 less $32 ,000 that is $40 ,000.

01:59 It has been calculated by the increase in the accumulated depreciation for the building and the equipment from 2014 to 2015.

02:08 This represents the depreciation expense for the year.

02:13 Changes in working capital accounts received payable increased by $60 ,000.

02:39 Inventory increased by $1 ,00 ,000...

Ace is your personal tutor. It breaks down any question with clear steps so you can learn.

Start Using Ace