Question

Calculating Operating Cash Flows (Direct Method) Chakravarthy Company's current year income statement reports the following: Sales $1,237,500 Cost of goods sold 825,000 Gross profit $412,500 Chakravarthy's comparative balance sheets show the following (accounts payable relate to merchandise purchases): End of Year Beg. of Year Accounts receivable $106,500 $90,000 Inventory 163,500 144,000 Accounts payable 46,500 55,500 Compute Chakravarthy's current-year cash received from customers and cash paid for merchandise purchased. Cash received from customers $ Cash paid for merchandise $

Answer 1

А B 1 Particulars Amount 2 Sales $ 1,237,500 3 Add: Beginning accounts receivables $ 90,000 4 Less: Ending accounts receivabels $ -106,500 5 Cash received from customers $ 1,221,000 6 7 Particulars Amount 8 Cost of goods sold $ 825,000 9 Add: Ending inventory $ 163,500 10 Less: Beginning inventory $ -144,000 11 Purchases $ 844,500 12 Add: Beginning accounts payable $ 55,500 13 Less: Ending accounts payable $ -46,500 14 Cash paid for merchandise $ 853,500

A B 1 Particulars Amount 2 Sales 1237500 3 Add: Beginning accounts receivables 90000 4 Less: Ending accounts receivabels - 106500 5 Cash received from customers =+B2+B3+B4 6 7 Particulars Amount 8 Cost of goods sold 825000 9 Add: Ending inventory 163500 10 Less: Beginning inventory - 144000 11 Purchases =+B8+B9+B10 12 Add: Beginning accounts payable 55500 13 Less: Ending accounts payable -46500 14 Cash paid for merchandise =+B11+B12+B13