Additional information: Accounts payable pertain to the purchase of inventory. P

Question

Additional information:

Accounts payable pertain to the purchase of inventory.

Plant assets were sold for $40,000. The cost of the plant assets was $40,000.

All dividends are cash.

Cash received/collected from customers is:

Purchases for the year is:

Cash paid to suppliers is:

Depreciation expense is:

Cash paid for operating expenses is:

Cash paid for interest is:

Cash paid for income taxes is:

Cash provided by/(used in)* operating activities is:

Cash provided by/(used in)* investing activities is:

Cash paid for dividends is:

Cash provided by/(used in)* financing activities is:

If Rent Expense for the period was $20,000, the Cash paid for Prepaid Rent is:

If your answer is cash “used in”, you must indicate this by writing your answer in parenthesis. For example, ($10,000). If your answer is cash “provided by”, you must write your answer without parentheses.

Balance Sheet December 31 2005 Assets Cash Accounts receivable Inventories Prepaid Rent Investments Plant assets Accumulated depreciation $ 20,000 160,000 80,000 15,000 100,000 210,000 $ 10,000 110,000 50,000 10,000 75,000 250,000 (65.000) 60,000 Total 000 $445,000 Liabilities and Stockholders' Equi Accounts payable Interest payable Income tax payable Note payable Common stock Retained eamings $ 50,000 20,000 5,000 130,000 155,000 160,000 $ 40,000 5,000 10,000 140,000 100,000 150,000 $445.000 Total Income Statenent For the Year Ended December 31, 2005 Sales Cost of goods sold Gross Profit Operating expenses (including Depreciation Expense) Interest expense Income tax expense $800,000 480,000 320,000 120,000 20,000 25.000 Total 165,000 155,000 5,000 S 160.000 Income before Gains and Losses ai n on sale of plant asset Net income

Explanation / Answer

Cash received/collected from customers is: Cash provided by/(used in)* operating activities is: Accounts receivables 2004 $110,000 Cash received/collected from customers $750,000 Add : Sales $800,000 Cash paid to suppliers is: -$500,000 Less : Accounts receivables 2005 $160,000 Cash paid for operating expenses is: -$115,000 Cash received/collected from customers $750,000 Cash paid for interest is: -$5,000 Cash paid for income taxes is -$30,000 Purchases for the year is: Cash provided by/(used in)* operating activities is: $100,000 Inventories 2005 $80,000 Add : Cost of goods sold $480,000 Cash provided by/(used in)* investing activities is: Less : Inventories 2004 $50,000 Sale of plant assets $40,000 Purchases for the year is: $510,000 Purchase of investments -$25,000 Cash provided by/(used in)* investing activities is: $15,000 Cash paid to suppliers is: Accounts payable 2004 $40,000 Cash paid for dividends is: Add : Purchases $510,000 Retained earnings 2004 $150,000 Less : Accounts Payable 2005 $50,000 Add : Net Income $160,000 Cash paid to suppliers is: $500,000 Less : Retained Earnings 2005 $160,000 Cash paid for dividends is: $150,000 Depreciation expense is: Accumulated depreciation 2005 $65,000 Cash provided by/(used in)* financing activities is: Add : Depreciation on Plant sold $5,000 Dividend paid -$150,000 less : Accumulated depreciation 2004 $60,000 Issue of common stock $55,000 Depreciation expense is: $10,000 Repayment of note payable -$10,000 Cash provided by/(used in)* financing activities is: -$105,000 Cash paid for operating expenses is: Prepaid rent 2005 $15,000 Cash paid for Prepaid Rent is: Add : Operating expenses $120,000 Rent expense $20,000 less : depreciation $10,000 Less : Prepaid rent 2004 $10,000 less : Prepaid rent 2004 $10,000 Add : Prepaid rent 2005 $15,000 Cash paid for operating expenses is: $115,000 Cash paid for Prepaid Rent is: $25,000 Cash paid for interest is: Interest payable 2004 $5,000 Add : Interest expense $20,000 Less : Interest payable 2005 $20,000 Cash paid for interest is: $5,000 Cash paid for income taxes is Income tax payable 2004 $10,000 Add : Income tax expense $25,000 Less : Income Tax payable 2005 $5,000 Cash paid for income taxes is $30,000

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