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

Business

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