customers, durilng 33. İnferring cash flows from balance sheet and income statement data. (Based on a problem prepared by Stephen A. Zeff.) You work for the Plains State Bank as an analyst special- izing in the financial statements of small businesses seeking loans from the bank. Digit Retail Enterprises Inc. provides you with its balance sheet for December 31, 2012 and 2013 (Exhibit 6.21), and its income statement for 2013 (Exhibit 6.22). Digit Retail Enterprises, Inc., acquired no new property, plant, and equipment during the year. a. Calculate the amount of cash received from customers during 2013. b. Calculate the acquisition cost of merchandise purchased during 2013. c. Calculate the amount of cash paid to suppliers of merchandise during 2013. d. Calculate the amount of cash paid to salaried employees during 2013. Digit Retail Enterprises, Inc. Balance Sheet EXHIBIT 6.21 (Problem 33) December 31, 2012 December 31, 2013 ASSETS Current Assets Cash.. $ 50,000 $ 36,000 38,000 23,000 Accounts Receivable 7,500 Notes Receivable 100 Interest Receivable Merchandise Inventory. 65,000 48,000 12,000 9,000 Prepaid Insurance. 2,000 Prepaid Rent $165,000 $125,600 Total Current Assets. Property, Plant, and Equipment At Cost.... $ 90,000 $100,000 (35,000) $ 55,000 (20,000) $ 80,000 Less Accumulated Depreciation. Net. $220,000 $205,600 Total Assets LIABILITIES AND SHAREHOLDER'S EQUITY Current Liabilities $ 20,000 $ 18,000 Accounts Payable-Merchandise Suppliers. Salaries Payable Rent Payable 2,800 2,100 3,000 6,100 8,500 Advances from Customers. Note Payable Dividends Payable. 5,500 2,600 4,200 Other Current Liabilities. 3,700 1,300 $ 43,700 $ 34,100 Total Current Liabilities Shareholders' Equity Common Stock $164,500 $160,000 11,800 11,500 Retained Earnings, Total Shareholders' Equity. $176,300 $220,000 $171,500 $205,600 Total Liabilities and Shareholders' Equity...
customers, durilng 33. İnferring cash flows from balance sheet and income statement data. (Based on a problem prepared by Stephen A. Zeff.) You work for the Plains State Bank as an analyst special- izing in the financial statements of small businesses seeking loans from the bank. Digit Retail Enterprises Inc. provides you with its balance sheet for December 31, 2012 and 2013 (Exhibit 6.21), and its income statement for 2013 (Exhibit 6.22). Digit Retail Enterprises, Inc., acquired no new property, plant, and equipment during the year. a. Calculate the amount of cash received from customers during 2013. b. Calculate the acquisition cost of merchandise purchased during 2013. c. Calculate the amount of cash paid to suppliers of merchandise during 2013. d. Calculate the amount of cash paid to salaried employees during 2013. Digit Retail Enterprises, Inc. Balance Sheet EXHIBIT 6.21 (Problem 33) December 31, 2012 December 31, 2013 ASSETS Current Assets Cash.. $ 50,000 $ 36,000 38,000 23,000 Accounts Receivable 7,500 Notes Receivable 100 Interest Receivable Merchandise Inventory. 65,000 48,000 12,000 9,000 Prepaid Insurance. 2,000 Prepaid Rent $165,000 $125,600 Total Current Assets. Property, Plant, and Equipment At Cost.... $ 90,000 $100,000 (35,000) $ 55,000 (20,000) $ 80,000 Less Accumulated Depreciation. Net. $220,000 $205,600 Total Assets LIABILITIES AND SHAREHOLDER'S EQUITY Current Liabilities $ 20,000 $ 18,000 Accounts Payable-Merchandise Suppliers. Salaries Payable Rent Payable 2,800 2,100 3,000 6,100 8,500 Advances from Customers. Note Payable Dividends Payable. 5,500 2,600 4,200 Other Current Liabilities. 3,700 1,300 $ 43,700 $ 34,100 Total Current Liabilities Shareholders' Equity Common Stock $164,500 $160,000 11,800 11,500 Retained Earnings, Total Shareholders' Equity. $176,300 $220,000 $171,500 $205,600 Total Liabilities and Shareholders' Equity...
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Q.33 a-h
Transcribed Image Text:customers, durilng
33. İnferring cash flows from balance sheet and income statement data. (Based on a problem
prepared by Stephen A. Zeff.) You work for the Plains State Bank as an analyst special-
izing in the financial statements of small businesses seeking loans from the bank. Digit
Retail Enterprises Inc. provides you with its balance sheet for December 31, 2012 and 2013
(Exhibit 6.21), and its income statement for 2013 (Exhibit 6.22). Digit Retail Enterprises,
Inc., acquired no new property, plant, and equipment during the year.
a. Calculate the amount of cash received from customers during 2013.
b. Calculate the acquisition cost of merchandise purchased during 2013.
c. Calculate the amount of cash paid to suppliers of merchandise during 2013.
d. Calculate the amount of cash paid to salaried employees during 2013.
Digit Retail Enterprises, Inc.
Balance Sheet
EXHIBIT 6.21
(Problem 33)
December
31, 2012
December
31, 2013
ASSETS
Current Assets
Cash..
$ 50,000
$ 36,000
38,000
23,000
Accounts Receivable
7,500
Notes Receivable
100
Interest Receivable
Merchandise Inventory.
65,000
48,000
12,000
9,000
Prepaid Insurance.
2,000
Prepaid Rent
$165,000
$125,600
Total Current Assets.
Property, Plant, and Equipment
At Cost....
$ 90,000
$100,000
(35,000)
$ 55,000
(20,000)
$ 80,000
Less Accumulated Depreciation.
Net.
$220,000
$205,600
Total Assets
LIABILITIES AND SHAREHOLDER'S EQUITY
Current Liabilities
$ 20,000
$ 18,000
Accounts Payable-Merchandise Suppliers.
Salaries Payable
Rent Payable
2,800
2,100
3,000
6,100
8,500
Advances from Customers.
Note Payable
Dividends Payable.
5,500
2,600
4,200
Other Current Liabilities.
3,700
1,300
$ 43,700
$ 34,100
Total Current Liabilities
Shareholders' Equity
Common Stock
$164,500
$160,000
11,800
11,500
Retained Earnings,
Total Shareholders' Equity.
$176,300
$220,000
$171,500
$205,600
Total Liabilities and Shareholders' Equity...
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