Question

Company A reports net sales of $2,350,000, cost of goods sold of $150,000, and income tax expense of $3,000 for the year ended December 31, Year 2. Selected balance sheet accounts are as follows Selected Balance Sheet Data December 31 Increase (1) Accounts receivable Acts payable Tc tax payable Required: Calculate cash received from customers, cash paid to suppliers, and cash paid for income taxes Cash received from customers Cash paid to suppliers Cash paid for income taxes < Prey Sof8 Nors) ere to search Bee9 O F G H J K |_

Answer 1

A	Cash Received from Customers:
	Opening Account Recievables	2,21,500
	Add: Net Sales	23,50,000
	Total Balance	25,71,500
	Less: Closing Account Receivables	2,68,000
	Cash Received from Customers	23,03,500
B	Cash Paid to Suppliers:			Inventory Puchased:
	Opening Account Payables	1,20,000		Cost of Goods Sold	11,50,000
	Add: Purchased Inventory	11,18,500		Add: Closing Inventory	1,16,500
	Total Balance	12,38,500		Total Balance	12,66,500
	Less: Closing Account Payables	1,11,500		Less: Opening Inventory	1,48,000
	Cash Paid to Suppliers	11,27,000		Purchased Inventory	11,18,500
C	Income Tax Expense	1,33,000
	Add: Opening Income Tax Payable	14,300
	Total Payable	1,47,300
	Less: Closing income Tax Payable	16,500
	Income Tax Paid	1,30,800