The following selected account balances are taken from a merchandising company's records:?Dec. 31Dec. 31,For the?20X220X1Year 20X2Merchandise inventory$ 15,600$ 21,200?Accounts receivable42,00036,000?Accounts payable32,40027,400?Salaries payable4,4003,000?????Total assets234,000286,000?Sales??$312,000Cost of goods sold??165,600Salaries expense??48,000(a) Calculate the cash payments made during 20X2 for merchandise. Assume all of the company's accounts payable balances result from merchandise purchases.(b) Calculate the cash receipts from customer sales during 20X2.(c) Calculate the cash payments for salaries during 20X2.
What will be an ideal response?
(a)Decrease in inventory = 15,600-21,200 =$ 5,600
| Cost of purchases = $165,600 ? $5,600 = | $160,000 |
| Cash paid for purchases of merchandise = $160,000 ? $5,000 = | $155,000 |
| Cash received from customer sales = $312,000 ? $6,000 = | $306,000 |
| (c)Increase in salaries payable $3,000-$4,400 = | $ 1,400 |
| Cash paid for salaries = $48,000 ? $1,400 = | $46,600 |
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