iPad *25%D+ 10:56 PM ezto.mheducation.com For each of the following items, calcu

Question

iPad *25%D+ 10:56 PM ezto.mheducation.com For each of the following items, calculate the cash sources or cash uses that should be recognized on the statement of cash flows for Baldin Co. for the year ended December 31, 2016: Required a. Sales on account (all are collectible) amounted to $757,000, and accounts receivable decreased by $24,400. How much cash was collected from customers? cash b. Income tax expense for the year was $134,000, and income taxes payable decreased by $35,100. How much cash was paid for income taxes? cash c. Cost of goods sold amounted to $405,000, accounts payable increased by $18,600, and inventories increased by $14,900. How much cash was paid to suppliers?

Explanation / Answer

a) Account Receivable Particular Debit Particular Credit Sale on Account 757000 Cash Collection from Customer 781400 Excess of Collection Over Sales on Account 24400 781400 781400 Hence, Amount of Cahs accrual ( Cash Collection from Customer is $781400) a) Account Receivable Particular Debit Particular Credit Sale on Account 757000 Cash Collection from Customer 781400 Excess of Collection Over Sales on Account 24400 781400 781400 Hence, Amount of Cahs accrual ( Cash Collection from Customer is $781400) b) Income Tax Payable Particular Debit Particular Credit Cash Payment for Taxes 169100 Income Tax Expense 134000 Excess of Payment over Expense 35100 169100 169100 Hence, Amount of Cash accrual ( Cash Payment for TAx is $169100) c) Inventory Particular Debit Particular Credit Inventory Purchase 419900 Cost of Goods Sold 405000 Excess of Purchase over cost of Goods Sold 14900 419900 419900 Account Payable Particular Debit Particular Credit Cahs Paid to Supplier 401300 Inventory Purchase 419900 Excess of Purchase over Payments 18600 419900 419900 Hence, Amount of Cahs accrual ( Cash paid to Supplier is $401300) d) Building, net of Accumulated Depreciation Particular Debit Particular Credit Purchase of Building 440000 Depreciation Expense 196000 Excess of Purchase over Depreciation Expense 244000 440000 440000 Hence, Amount of Cash accrual (Purchase of Building) is $440000)

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