1. How much cash is paid to acquire inventory during year 2019? 2. How much cash is paid for "other expenses" during year 2019? Hint: Examine prepaid expenses and wages payable. 1. Cash paid for inventory $ 66,100 2. Cash paid for other expenses 2$ 88,700: .......
1. How much cash is paid to acquire inventory during year 2019? 2. How much cash is paid for "other expenses" during year 2019? Hint: Examine prepaid expenses and wages payable. 1. Cash paid for inventory $ 66,100 2. Cash paid for other expenses 2$ 88,700: .......
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:CRUZ, INC.
Comparative Balance Sheets
December 31, 2019
2019
2018
Assets
Cash
Accounts receivable, net
Inventory
Prepaid expenses
$ 66,100 $ 16,600
28,500
59,700
3,700
35,200
66,100
3,000
Total current assets
158,000
120,900
Furniture
74,600
85,000
Accum. depreciation-Furniture
(11,600)
(6,400)
Total assets
$221,000
$199,500
Liabilities and Equity
Accounts payable
Wages payable
Income taxes payable
$ 10,400
6,300
1,000
17,700
20,700
$ 14,700
3,500
1,900
20,100
50,500
70,600
Total current liabilities
Notes payable (long-term)
Total liabilities
38,400
Equity
Common stock, $5 par value
Retained earnings
159,500
125,000
23,100
3,900
Total liabilities and equity
$221,000
$199,500
CRUZ, INC.
Income Statement
For Year Ended December 31, 2019
Sales
Cost of goods sold
Gross profit
Operating expenses
$341,600
219,800
121,800
Transcribed Image Text:CRUZ, INC.
Income Statement
For Year Ended December 31, 2019
Sales
Cost of goods sold
Gross profit
Operating expenses
Depreciation
$341,600
219,800
121,800
26,300
expense
Other expenses
88,700
33,100
12,100
$ 21,000
62,400
Income before taxes
Income taxes expense
Net income
1. How much cash is paid to acquire inventory during year 2019?
2. How much cash is paid for "other expenses" during year 2019? Hint: Examine prepaid expenses and wages payable.
1.
Cash paid for inventory
24
66,100
2.
Cash paid for other expenses
88,700:
%24
%24
Expert Solution
Step 1
Purchases = Cost of goods sold + Ending inventory - Beginning inventory
Purchases + Beginning accounts payable - Ending accounts payable = Cash paid for inventory
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