Question

Question 3 Examine the following cash from operations section of Comox Ltd. and determine whether the asset and liability accounts shown increased or decreased during the year. $1,980 Comox Ltd. Cash from Operations For the year ended December 31, 2018 (000) Net income Depreciation Loss on sale of equipment Changes in working capital accounts Accounts receivable Inventories Accounts payable and accrued liabilities Wages payable Other current assets Cash from operations (18) $2 299 Question 4 In its April 30, 2018 financial statements, Trump International Inc. (Trump) reported a beginning accounts receivable balance of $363,000 and an ending accounts receivable balance of $456,000. Trump reported sales for the year ended April 30, 2018 of $4,626,000. All sales are on credit. Required: Calculate the amount of cash Trump collected from customers during fiscal 2018 Question 5 In its May 31, 2017 annual report, Beyonce Ltd. (Beyonce) reported that it had inventory of $175,000 and accounts payable of $104,000 on May 31, 2016, and inventory of $196,000 and accounts payable of $122,000 on May 31, 2017. Beyonce's income statement for the year ended May 31, 2017 reported cost of goods sold of $1,220,000. Required: Calculate the amount of cash that Beyonce paid to suppliers for purchases of inventory during fiscal 2017. Assume that accounts payable pertain only to the purchase of inventory on credit.

Answer 1

By using the information given above, I have solved all 3 questions with explanations.

E 6 Question 4: Information given in the problem Beginning balance of Account Receivable Less: Ending balance of Account Receivable Add: Credit Sales Cash collected from the customers 363000 456000 4626000 4533000 1 Question 3: Information from the cash from operations of Comox Ltd. 2 determine whether asset/liability increased/decreased 3 4 Account Type Increase/Decrease 5 Accounts Receivable Asset Decrease 6 Inventories Asset Increase 7 Accounts Payable & Accrued Liabilities Liability Increase 8 Wages Payable Liability Decrease 9 Other Current Assets Asset Increase 10 11 Note: In the Cash from operations under indirect method 12 If asset is increased, it is deducted from net income and vice versa. 13 If Liability is increased, it is added to the net income and vice versa. Particulars To Beginning balance To Credit Sales Amount 4533000 Account Receivable Amount Particulars 363000 By Cash 4626000(balancing figure) Ending balance 4989000 456000 4989000 14 The amount of cash Trump collected from customers during fiscal 2018 is $4,533,000 15 16 17 18

K M O P a Question 5: Beyonce Ltd, information given in the prroblem Inventory as on May 31, 2016 Inventory as on May 31, 2017 Accounts Payable as on May 31, 2016 Accounts Payable as on May 31, 2017 Cost of goods sold as on May 31, 2017 175000 196000 104000 122000 1220000 First determine the purchases made during the year, which is the balancing figure in the inventory account. Inventory Particulars Amount Particulars Amount To Beginning balance 175000|By Cost of goods sold 1220000 To Purchases 1241000 (Balancing figure) Ending balance 196000 1416000 1416000 Using the purchases amount earlier determined, we calculate the cash paid to the suppliers Accounts Payable Particulars Amount Particulars Amount To Beginning balance 104000 By Cash 1223000 To Purchases 1241000 ( Balancing figure) (Balancing figure Ending balance 122000 1345000 1345000 The amount of cash that Beyonce paid to the suppliers for purchases of inventory during fiscal 2017 is $1223000