e 12-09 Question 9 of 9 Check My work comparative balance sheets also induded ac
ID: 2521018 • Letter: E
Question
e 12-09 Question 9 of 9 Check My work comparative balance sheets also induded accounts payable of Wolf's comparative balance sheets induded inventory of $52,500 at December 31, 2013, and $72,000 at December 31, 2014. The $33,000 at December 31, 2013, and $39,000 at December 31 Cost of goods sold, as reported on the 2014 income statement, amounted to $120,000. What is the amount of cash payments for inventory , 2014. Wolf's accounts payable balances are composed solely of amounts due to suppliers for that Wolf will report in the Operating Activities section of its 2014 statement of cash flows assuming that the direct method is used? Check My Work F8 F9 F10 $12 Home nd F3Explanation / Answer
Answer 1.
Inventory, December 31, 2014 = Inventory, December 31, 2013 + Purchases - Cost of Goods Sold
$72,000 = $52,500 + Purchases - $120,000
Purchases = $139,500
Cash Paid to Suppliers = Accounts Payable, December 31, 2013 + Purchases - Accounts Payable, December 31, 2014
Cash Paid to Suppliers = $33,000 + $139,500 - $39,000
Cash Paid to Suppliers = $133,500
Answer 2.
Cash Collection from Customers = Accounts Receivable, December 31, 2013 + Sales - Accounts Receivable, December 31, 2014
Cash Collection from Customers = $28,000 + $48,500 - $20,500
Cash Collection from Customers = $56,000
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