The Bears Corporation has provided you the following information: Increase in accounts receivable balance 50,000 Net sales 500,000 Gross profit as a percentage of net sales 40%Increase in the inventory account 45,000 Accounts payable balance decreased 17,000 Accounts receivable writeoffs 7,500 Bad debt expense 10,000 Required:
Determine the cash collected from customers.Determine the cash paid to suppliers.
What will be an ideal response?
1.
$442,500 = $500,000 ? $50,000 ? $7,500
2.
$362,000 = $300,000 (cost of goods sold: $500,000 × 0.60) + $45,000 + $17,000
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