For each of the following independent cases, use the information provided to calculate the missing cash inflow or cash outflow using the direct method.(a.)Interest payable, beginning-year$4,200?Interest expense?26,700?Interest payable, year-end?3,000?Cash paid for interest$?????(b.)Prepaid insurance, beginning-year$7,000?Insurance expense?16,800?Prepaid insurance, year-end?3,400?Cash paid for insurance$?????(c.)Interest receivable, beginning-year$800?Interest revenue?12,600?Interest receivable, year-end?1,200?Cash received for interest$?????(d.)Accounts payable, beginning-year$60,000?Cost of goods sold?244,000?Merchandise inventory, beginning-year?35,000?Merchandise inventory, year-end?40,500?Accounts payable,
year-end?64,800?Cash paid for merchandise$?
What will be an ideal response?
| (a.) | Interest expense | $ 26,700 |
| ? | Decrease in interest payable ($4,200 - $3,000) | 1,200 |
| ? | Cash paid for interest | $ 27,900 |
| ? | ? | ? |
| (b.) | Insurance expense | $ 16,800 |
| ? | Decrease in prepaid insurance ($7,000 - $3,400) | (3,600) |
| ? | Cash paid for insurance | $ 13,200 |
| ? | ? | ? |
| (c.) | Interest revenue | $ 12,600 |
| ? | Increase in interest receivable ($1,200 - $800) | (400) |
| ? | Cash received for interest | $ 12,200 |
| ? | ? | ? |
| (d.) | Cost of goods sold | $244,000 |
| ? | Increase in merchandise inventory ($40,500 - $35,000) | 5,500 |
| ? | Merchandise purchases | 249,500 |
| ? | Increase in accounts payable ($64,800 - 60,000). | (4,800) |
| ? | Cash paid for merchandise | $244,700 |
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