Balance Sheet June 30th, Year 5 Assets Cash 10,000 Accounts receivables 34,000 Inventory 60,000 Prepaid Insurance 4,000 Capital Assets 200,000 Accumulated depreciation (40,000) Total Assets 268,000 Liabilities and Equity Accounts Payable 19,000 Wages Payable 4,000 Income Tax Payable 1,000 Notes Payables 80,000 Common Shares 100,000 Retained Earnings 64,000 Total Liabilities and Equity 268,000 The following are all transactions that happened during Year 6: Made all sales on account of $250,000 Collected accounts receivable of $245,000 Purchased merchandise on account of $134,000 Determined cost of goods sold was $137,300 Paid accounts payable (for merchandise purchased) of $143,000 Paid wages to employees of $67,000 Accrued wages expense (and wages payable) of $1,500 at June 30th, Year 6. Paid insurance premium of $18,000 to extend coverage for three years. Allocated $5,000 of prepaid insurance to insurance expense. Recorded Year 6 total income tax expense (and income tax payable) of $13,000 Paid income taxes to government of $11,500 (this represents the final portion of Year 5 taxes and initial installments of Year 6 taxes). Depreciation for the year $10,000 Required 1: What is the amount of Cash received (paid) from employees? $ Required 2: What is the amount of cash generated (used) by Inventory in year 6? $ Required 3: What is the amount of cash generated (used) by operations in year 6? $ Required 4: What is amount of Net Income reported in year 6? $ Required 5: What is ending balance of Cash at the end of Year 6? $ Required 6: What is ending balance of Inventory at the end of Year 6? $ Required 7: What is ending balance of Retained Earnings at the end of Year 6? $
Balance Sheet June 30th, Year 5 Assets Cash 10,000 Accounts receivables 34,000 Inventory 60,000 Prepaid Insurance 4,000 Capital Assets 200,000 Accumulated depreciation (40,000) Total Assets 268,000 Liabilities and Equity Accounts Payable 19,000 Wages Payable 4,000 Income Tax Payable 1,000 Notes Payables 80,000 Common Shares 100,000 Retained Earnings 64,000 Total Liabilities and Equity 268,000 The following are all transactions that happened during Year 6: Made all sales on account of $250,000 Collected accounts receivable of $245,000 Purchased merchandise on account of $134,000 Determined cost of goods sold was $137,300 Paid accounts payable (for merchandise purchased) of $143,000 Paid wages to employees of $67,000 Accrued wages expense (and wages payable) of $1,500 at June 30th, Year 6. Paid insurance premium of $18,000 to extend coverage for three years. Allocated $5,000 of prepaid insurance to insurance expense. Recorded Year 6 total income tax expense (and income tax payable) of $13,000 Paid income taxes to government of $11,500 (this represents the final portion of Year 5 taxes and initial installments of Year 6 taxes). Depreciation for the year $10,000 Required 1: What is the amount of Cash received (paid) from employees? $ Required 2: What is the amount of cash generated (used) by Inventory in year 6? $ Required 3: What is the amount of cash generated (used) by operations in year 6? $ Required 4: What is amount of Net Income reported in year 6? $ Required 5: What is ending balance of Cash at the end of Year 6? $ Required 6: What is ending balance of Inventory at the end of Year 6? $ Required 7: What is ending balance of Retained Earnings at the end of Year 6? $
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Balance Sheet June 30th, Year 5
Assets
Cash 10,000
Accounts receivables 34,000
Inventory 60,000
Prepaid Insurance 4,000
Capital Assets 200,000
Accumulated depreciation (40,000)
Total Assets 268,000
Liabilities and Equity
Accounts Payable 19,000
Wages Payable 4,000
Income Tax Payable 1,000
Notes Payables 80,000
Common Shares 100,000
Retained Earnings 64,000
Total Liabilities and Equity 268,000
The following are all transactions that happened during Year 6:
Made all sales on account of $250,000
Collected accounts receivable of $245,000
Purchased merchandise on account of $134,000
Determined cost of goods sold was $137,300
Paid accounts payable (for merchandise purchased) of $143,000
Paid wages to employees of $67,000
Accrued wages expense (and wages payable) of $1,500 at June 30th, Year 6.
Paid insurance premium of $18,000 to extend coverage for three years.
Allocated $5,000 of prepaid insurance to insurance expense.
Recorded Year 6 total income tax expense (and income tax payable) of $13,000
Paid income taxes to government of $11,500 (this represents the final portion of Year 5 taxes and initial
installments of Year 6 taxes).
Depreciation for the year $10,000
Required 1: What is the amount of Cash received (paid) from employees? $
Required 2: What is the amount of cash generated (used) by Inventory in year 6? $
Required 3: What is the amount of cash generated (used) by operations in year 6? $
Required 4: What is amount of Net Income reported in year 6? $
Required 5: What is ending balance of Cash at the end of Year 6? $
Required 6: What is ending balance of Inventory at the end of Year 6? $
Required 7: What is ending balance of Retained Earnings at the end of Year 6? $
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