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 year45,000?Merchandise inventory balances:?? Beginning of year 50,000? End of year 47,500?Cost of goods sold250,000?Cash paid for merchandise inventory $_ _____???(c)Interest payable balances:?? Beginning of year $ 7,500? End of year9,200?Interest expense35,000?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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