question: Summary Balance Sheets for Buckley Boat Repairs Ltd are given below: T
ID: 2412532 • Letter: Q
Question
question: Summary Balance Sheets for Buckley Boat Repairs Ltd are given below:
The following information has been extracted from the company's income statement for the year ended 31 Dec 20x2.
Sales $1658,880
Cost of goods sold $ 875,520
Wages expenses $ 322,560
1. Calculate the cash received from customers during the year ended 31 Dec 20x2.
2. Calculate the cash payments to suppliers during the year ended 31 Dec 20x2.
3. How much cash was paid to employees for wages during the year ended 31 Dec 20x2?
4. What amount of net increase or decrease in cash and cash equivalents held during the year ended 31 Dec 20x2 would be reported in the company's cash flow statement?
31 Dec 20x2 31 Dec 20x1 cash 138,240 92,160 Accounts receivable 36,864 55,296 Inventory 147,456 202,752 Plant & Equipment 110,592 82,944 Total assets 433,152 433,152 Accounts payable 64,512 27,648 Wages payable 73,729 119,808 Non-current liabilities 82,944 110,592 Share capital 92,160 92,160 Retained profits 119,808 82,944 Total liabilities and owners equity 433,152 433,152Explanation / Answer
1. Cash received from customers during the year ended 31 Dec 20X2 = Beginning accounts receivable + Sales - Ending accounts receivable = $ 55,296 + $ 1,658,880 - $ 36,864 = $ 1,677,312.
2. Cash payments to suppliers during the year ended 31 Dec 20X2 : $ 783,360.
Credit purchases of inventory during 20X2 = Ending inventory + Cost of goods sold - Beginning inventory = $ 147,456 + $ 875,520 - $ 202,752 = $ 820,224
Cash payments to suppliers = Beginning accounts payable + Purchases - Ending accounts payable = $ 27,648 + $ 820,224 - $ 64,512 = $ 783,360
3. Amount paid to employees for wages = Beginning wages payable + Wages expense - Ending wages payable = $ 119,808 + $ 322,560 - $ 73,729 = $ 368,639
4. Net increase in cash and cash equivalents during the year ended DEc 31, 20X2 = $ 138,240 - $ 92,160 = $ 46,080.
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