An entity provided the following data: December 31, 2017 December 31, 2018 Trade accounts receivable, net of allowance 840,000 780,000 Inventory 1,500,000 1,400,000 Accounts payable 950,000 980,000 Total sales were P12,000,000 for 2018 and P11,000,000 for 2017. Cash sales were 20% of total sales each year. Cost of goods sold was P8,400,000 for 2018.
An entity provided the following data: December 31, 2017 December 31, 2018 Trade accounts receivable, net of allowance 840,000 780,000 Inventory 1,500,000 1,400,000 Accounts payable 950,000 980,000 Total sales were P12,000,000 for 2018 and P11,000,000 for 2017. Cash sales were 20% of total sales each year. Cost of goods sold was P8,400,000 for 2018.
Financial Accounting: The Impact on Decision Makers
10th Edition
ISBN:9781305654174
Author:Gary A. Porter, Curtis L. Norton
Publisher:Gary A. Porter, Curtis L. Norton
Chapter12: The Statement Of Cash Flows
Section: Chapter Questions
Problem 12.6E
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STATEMENT OF CASH FLOWS
An entity provided the following data:
|
December 31, 2017 |
December 31, 2018
|
Trade accounts receivable, net of allowance |
840,000 |
780,000 |
Inventory |
1,500,000 |
1,400,000 |
Accounts payable |
950,000 |
980,000 |
- Total sales were P12,000,000 for 2018 and P11,000,000 for 2017. Cash sales were 20% of total sales each year. Cost of goods sold was P8,400,000 for 2018.
- Variable expenses for 2018 amounted to P1,200,000 and varied in proportion to sales. Variable expenses had been paid 50% in the year incurred and 50% the following year.
- Fixed expenses, including P350,000
depreciation and P50,000bad debt expense, totaled P1,000,000 each year. Eighty percent of fixed expenses involving cash were paid in the year incurred and 20% the following year. Each year there was a P50,000 bad debt estimate and a P50,000 writeoff.
1. What amount of cash was disbursed for variable expenses during 2018?
2. What amount of cash was disbursed for fixed expenses during 20
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