Corporation XYZ Income Satement For the year that ends in December 31, 2022 Sales $ 660,000 Cost of goods sold $ (450,000) Gross income $ 210,000 Operating expenses (see note) $ (144,000) Interest expense $ (5,300) Unrealized loss on stock investments $ (500) Profit from sale of equipment $ 1,000 $ (148,800) Income before taxes $ 61,200 Tax expenses $ (18,360) NET INCOME $ 42,840 Partial information of the Comparative Statement of Financial Position (Excluding cash, all current asset accounts and current debts of the company are summarized here) 31/12/22 31/12/21 Difference Accounts Receivable $ 63,000 $ 72,000 $ Allowance for uncollectable accounts $ 1,000 $ 700 $ Inventory $ 114,000 $ 90,000 $ Accounts Payable $ 24,000 $ 42,000 $ Interest Payable $ 2,500 $ 1,000 $ Taxes payable $ 5,200 $ 4,000 $ Discount on bonds payable $ 2,000 $ 2,300 $ Other information 1. During the year, the corporation write-off $200 from the uncollectable accounts 2. During the year, there we no emissions or withdrawals from bonds payables 3. Among the operating expenses, the following do not affect cash account: Uncollectable accounts expense ? Depreciating expense $ 1,100 Loss due to impairment of equipment $ 300 Compensation expense utilizing options $ 600 Required: Answer the following four questions 1. How much cash did XYZ receive from its customers during 2022? 2. How much cash did XYZ pay out to inventory suppliers during 2022? 3. How much cash did XYZ pay in interest during 2022? (9,000) 300 24,000 (18,000) 1,500 1,200 (300)
Corporation XYZ Income Satement For the year that ends in December 31, 2022 Sales $ 660,000 Cost of goods sold $ (450,000) Gross income $ 210,000 Operating expenses (see note) $ (144,000) Interest expense $ (5,300) Unrealized loss on stock investments $ (500) Profit from sale of equipment $ 1,000 $ (148,800) Income before taxes $ 61,200 Tax expenses $ (18,360) NET INCOME $ 42,840 Partial information of the Comparative Statement of Financial Position (Excluding cash, all current asset accounts and current debts of the company are summarized here) 31/12/22 31/12/21 Difference Accounts Receivable $ 63,000 $ 72,000 $ Allowance for uncollectable accounts $ 1,000 $ 700 $ Inventory $ 114,000 $ 90,000 $ Accounts Payable $ 24,000 $ 42,000 $ Interest Payable $ 2,500 $ 1,000 $ Taxes payable $ 5,200 $ 4,000 $ Discount on bonds payable $ 2,000 $ 2,300 $ Other information 1. During the year, the corporation write-off $200 from the uncollectable accounts 2. During the year, there we no emissions or withdrawals from bonds payables 3. Among the operating expenses, the following do not affect cash account: Uncollectable accounts expense ? Depreciating expense $ 1,100 Loss due to impairment of equipment $ 300 Compensation expense utilizing options $ 600 Required: Answer the following four questions 1. How much cash did XYZ receive from its customers during 2022? 2. How much cash did XYZ pay out to inventory suppliers during 2022? 3. How much cash did XYZ pay in interest during 2022? (9,000) 300 24,000 (18,000) 1,500 1,200 (300)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Corporation XYZ
Income Satement
For the year that ends in December 31, 2022
Sales
$
660,000
Cost of goods sold
$
(450,000)
Gross income
$ 210,000
Operating expenses (see note)
$
(144,000)
Interest expense
$
(5,300)
Unrealized loss on stock investments
$
(500)
Profit from sale of equipment
$
1,000
$
(148,800)
Income before taxes
$
61,200
Tax expenses
$
(18,360)
NET INCOME
$
42,840
Partial information of the Comparative Statement of Financial Position
(Excluding cash, all current asset accounts and current debts of the company are summarized here)
31/12/22
31/12/21
Difference
Accounts Receivable
$
63,000 $
72,000 $
Allowance for uncollectable accounts
$
1,000 $
700 $
Inventory
$
114,000 $
90,000 $
Accounts Payable
$
24,000 $
42,000 $
Interest Payable
$
2,500 $
1,000 $
Taxes payable
$
5,200 $
4,000 $
Discount on bonds payable
$
2,000 $
2,300 $
Other information
1. During the year, the corporation write-off $200 from the uncollectable accounts
During the year, there we no emissions or withdrawals from bonds payables
3. Among the operating expenses, the following do not affect cash account:
Uncollectable accounts expense
?
Depreciating expense
$
1,100
Loss due to impairment of equipment
$
300
Compensation expense utilizing options
$
600
Required: Answer the following four questions
1. How much cash did XYZ receive from its customers during 2022?
2. How much cash did XYZ pay out to inventory suppliers during 2022?
3. How much cash did XYZ pay in interest during 2022?
4. What is XYZ's net cash from operating activities for the year ending December 31, 2022?
(9,000)
300
24,000
(18,000)
1,500
1,200
(300)
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