1) Calculate the cash collected from customers in 2024. 2) Calculate the cash paid to suppliers for purchase of inventory. 3) One FV-NI investment was sold during the year. Its carrying value at the beginning of the year was: Calculate the NET cash generated/used up by the sales and purchases of FV-NI investments. $ 125,000
1) Calculate the cash collected from customers in 2024. 2) Calculate the cash paid to suppliers for purchase of inventory. 3) One FV-NI investment was sold during the year. Its carrying value at the beginning of the year was: Calculate the NET cash generated/used up by the sales and purchases of FV-NI investments. $ 125,000
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
ChapterA1: International Financial Reporting Standards
Section: Chapter Questions
Problem 7MCQ
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Question
![You have partial information from an entity financial statements as follows:
Accounts receivable
Allowance for doubtful accounts
Inventory
FV-NI Investments
Accounts payable
Unearned revenues
Equipment
Accumulated
depreciation -
equipment
Sales
Cost of goods sold
Depreciation expense
Bad debt expense
Loss on sale of equipment
Loss on sale of FV-NI investments
Holding gain- FV-NI investments
Note also the following:
Accounts written off that were recoved during 2024:
$
$
$
$
$
2024
4,450,000 $
(198,000) $
3,820,000 $
1020000
2,740,000 $
365,000 $
200,000
-98,000
$
$
$
$
$
2023
3,690,000
(165,000)
4,490,000
925000
2,630,000
430,000
189,000
-89,000
20,560,000
9,250,000
10,000
356,000
5,500
5000
33000
25,000
Required
1) Calculate the cash collected from customers in 2024.
2) Calculate the cash paid to suppliers for purchase of inventory.
3) One FV-NI investment was sold during the year. Its carrying value at the beginning
of the year was:
$
125,000
Calculate the NET cash generated/used up by the sales and purchases of FV-NI investments.
4) Equipment costing $40,000 was purchased during the year. Half of this amount was paid in cash, and half was financed by issuing a note payable.
Calculate the NET cash generated/used up by sales/purchases of equipment.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fbce406f3-3dde-41bf-9bc7-4dc15c5c0346%2F6a8385c6-e79e-447f-8ea5-2ba595cc7238%2Fq4035j_processed.png&w=3840&q=75)
Transcribed Image Text:You have partial information from an entity financial statements as follows:
Accounts receivable
Allowance for doubtful accounts
Inventory
FV-NI Investments
Accounts payable
Unearned revenues
Equipment
Accumulated
depreciation -
equipment
Sales
Cost of goods sold
Depreciation expense
Bad debt expense
Loss on sale of equipment
Loss on sale of FV-NI investments
Holding gain- FV-NI investments
Note also the following:
Accounts written off that were recoved during 2024:
$
$
$
$
$
2024
4,450,000 $
(198,000) $
3,820,000 $
1020000
2,740,000 $
365,000 $
200,000
-98,000
$
$
$
$
$
2023
3,690,000
(165,000)
4,490,000
925000
2,630,000
430,000
189,000
-89,000
20,560,000
9,250,000
10,000
356,000
5,500
5000
33000
25,000
Required
1) Calculate the cash collected from customers in 2024.
2) Calculate the cash paid to suppliers for purchase of inventory.
3) One FV-NI investment was sold during the year. Its carrying value at the beginning
of the year was:
$
125,000
Calculate the NET cash generated/used up by the sales and purchases of FV-NI investments.
4) Equipment costing $40,000 was purchased during the year. Half of this amount was paid in cash, and half was financed by issuing a note payable.
Calculate the NET cash generated/used up by sales/purchases of equipment.
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