For each of the following separate cases, use the information provided to calculate the missing cash inflow or cash outflow using the direct method.(a)Accounts receivable balances:?? Beginning of year ……………………… $ 60,000? End of year ……………………………..57,000?Sales revenue (all on credit) ……………..375,000?Cash received from customers $______???(b)Accounts payable balances:?? Beginning of year ………………………. $ 42,000? End of year………………………………45,000?Merchandise inventory balances:?? Beginning of year ………………………50,000? End of year ……………………………..47,500?Cost of goods sold………………………..250,000?Cash paid for
merchandise inventory……. $______???(c)Interest payable balances:?? Beginning of year ……………………... $ 7,500? End of year …………………………….9,200?Interest expense …………………………35,000?Cash paid for interest …………………… $______
What will be an ideal response?
| (a) | Sales Revenue ………………………… | $375,000 |
| ? | Decrease in accounts receivable ($60,000 ? $57,000) ……………… | 3,000 |
| ? | Cash received from customers………… | $378,000 |
| ? | ? | ? |
| (b) | Cost of goods sold…………………… | $250,000 |
| ? | Decrease in merchandise inventory ($50,000 ? $47,500)……………… | (2,500) |
| ? | Merchandise purchases……………… | 247,500 |
| ? | Increase in accounts payable ($45,000 ? $42,000)……………… | (3,000) |
| ? | Cash paid for merchandise inventory… | $244,500 |
| ? | ? | ? |
| (c) | Interest expense……………………… | $35,000 |
| ? | Increase in interest payable ($9,200 ? $7,500)………………… | (1,700) |
| ? | Cash paid for interest………………… | $33,300 |
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