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 63,000?Sales revenue (all on credit) 395,000?Cash received from customers $______???(b)Accounts payable balances:?? Beginning of year $ 42,000? End of year31,000?Merchandise inventory balances:?? Beginning of year 50,000? End of year 52,500?Cost of goods sold250,000?Cash paid for merchandise inventory $ ______???(c)Interest payable balances:?? Beginning of year $ 7,500? End of year 8,200?Interest expense 31,000?Cash paid for interest $ ______
What will be an ideal response?
| (a) | Sales Revenue | $395,000 |
| ? | Increase in accounts receivable ($63,000 - $60,000) | (3,000) |
| ? | Cash received from customers | $392,000 |
| ? | ? | ? |
| (b) | Cost of goods sold | $250,000 |
| ? | Increase in merchandise inventory ($52,500 - $50,000) | 2,500 |
| ? | Merchandise purchases | 252,500 |
| ? | Decrease in accounts payable ($42,000 - $31,000) | 11,000 |
| ? | Cash paid for merchandise inventory | $263,500 |
| ? | ? | ? |
| (c) | Interest expense | $31,000 |
| ? | Increase in interest payable ($8,200 - $7,500) | (700) |
| ? | Cash paid for interest | $30,300 |
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