BC Company's balance sheets for March appear below: March 1 March 31 ASSETS: Cash 29,000 17,000 Accounts receivable 55,000 64,000 Inventory 49,000 38,000 Land 31,000 94,000 LIABILITIES + EQUITY: Accounts payable 22,000 25,000 Advertising payable 18,000 11,000 Notes payable 46,000 32,000 Common stock 37,000 86,000 Retained earnings 41,000 59,000 ABC Company's income statement for March is below: Sales revenue 368,000 Cost of goods sold 242,000 Rent expense 37,000 Advertising expense 49,000 Income tax expense 16,000 Net income 24,000 Calculate the amount of cash paid for advertising reported by ABC Company in its March statement of cash flows.
ABC Company's
March 1 March 31 ASSETS:
Cash 29,000 17,000
Accounts receivable 55,000 64,000
Inventory 49,000 38,000
Land 31,000 94,000
LIABILITIES + EQUITY:
Accounts payable 22,000 25,000
Advertising payable 18,000 11,000
Notes payable 46,000 32,000
Common stock 37,000 86,000
Retained earnings 41,000 59,000
ABC Company's income statement for March is below:
Sales revenue 368,000 Cost of goods sold 242,000
Rent expense 37,000 Advertising expense 49,000
Income tax expense 16,000 Net income 24,000
Calculate the amount of cash paid for advertising
reported by ABC Company in its March statement of
cash flows.
Expenses means the amount of money incurred by the entity on the day-to-day business activities. These are reported on the income statement.
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