During Year 1, Hardy Merchandising Company purchased $16,000 of inventory on account. Hardy sold inventory on account that cost $12,000 for $18,000. Cash payments on accounts payable were $10,000. There was $16,000 cash collected from accounts receivable. Hardy also paid $3,600 cash for operating expenses. Assume that Hardy started the accounting period with $24,000 in both cash and common stock.     What are the amounts of gross margin and net income for Year 1? Determine the amount of net cash flow from operating activities

Q: Valenzuela, Incorporated, has a cash cycle of 45.5 days, an operating cycle of 67 days, and an…

A: Operating cycle is calculated by taking the inventory turnover days and the account receivable days…

Q: The following information is taken from Reagan Company's December 31 balance sheet:   Cash and cash…

A: days sales uncollected means number of days before receivables will collected. It also known as…

Q: Plum Corporation began the month of May with $1,300,000 of current assets, a current ratio of…

A: Current ratio: the current ratio is calculated by dividing the total current assets by the total…

Q: Plum Corporation began the month of May with $1,200,000 of current assets, a current ratio of…

A: A company's ability to pay off short-term debt or commitments that are due within a year is…

Q: Plum Corporation began the month of May with $700,000 of current assets, a current ratio of 2.50:1,…

A: As question has to calculate the current ratio , acid test ratio and working capital after each…

Q: The total cost of goods sold was recorded as $65,900 on the income statement. The inventory account…

A: A company’s closing inventory represents the remaining number of goods after sales. It is calculated…

Q: at cost $70,000 for $118,000.  15 Collected a $30,000 account receivable.  17 Paid a $32,000 account…

A: The schedule is calculated as,

Q: Plum Corporation began the month of May with $1,400,000 of current assets, a current ratio of…

A: An effective metric for evaluating a business's short-term financial stability and capacity to pay…

Q: At​ year-end, StickStick has cash of $ 22 comma 000$22,000​, current accounts receivable of $ 80…

A: Calculate the receivables turnover ratio.

Q: Corentine Company had $152,000 of accounts payable on September 30 and $132, 500 on October 31.…

A:

Q: At the beginning of Year 2, the Redd Company had the following balances in its accounts:      Cash…

A: Financial statements refers to the statements which is being prepared by the companies at the end of…

Q: At year-end, Sally, Inc. has cash of $14,000, current accounts receivable of $70,000, merchandise…

A: Accounts receivable turnover is calculated by dividing the Net credit sales by the Average accounts…

Q: Powell Company began the Year 3 accounting period with $33,000 cash, $71,000 inventory, $52,000…

A: Accounting is the process of recording financial transactions that are material to the business. It…

Q: At the beginning of Year 2, Donald Company had $8,600 of inventory on hand. During the accounting…

A: The cost of goods available for sale refers to the value of goods that the company offers to the…

Q: During the current year, Khan’s Camera Shop had sales revenue of $220,000, of which $100,800 was on…

A: Bad debts expense refers to an expense for recording accounts receivable which are uncollectible…

Q: Consider the following financial statement information for the Newk Corporation: Item Beginning…

A: Inventory=$12435 and $15615Account receivable=$6120 and $6287Cost of good sold=$79218Credit…

Q: At the beginning of the year, Bennett Supply has inventory of $3,500. During the year, the company…

A: Cost of goods sold (COGS) : Cost of goods sold shows the expenses incurred for producing a product.…

Q: Refer to the following selected financial information from Texas Electronics. Compute the company’s…

A: The days' sales in inventory is a measure of the average number of days that a company holds its…

Q: At the end of the fiscal year, Big Box Depot had account receivables of $1.89 billion on net sales…

A: The analysis of the line items included in the company's financial accounts is referred to as ratio…

Q: he following information applies to the questions displayed below.] Powell Company began the…

A: The important financial statements of the business are income statement, balance sheet and cash flow…

Q: Powell Company began the Year 2 accounting period with $18,900 cash, $60,500 Inventory, $49,400…

A: The important financial statements of the business are income statement, balance sheet and cash flow…

Q: Summer Kluxon, Inc. purchased inventory costing $150,000 and sold 75% of the goods for $180,000. All…

A: The perpetual inventory system provides a more accurate and immediate calculation of the cost of…

Q: The Pasley Company prepares an income statement that reports cost of goods sold of $320,000, rent…

A: Cash paid to supplier :— It is the amount of cash spend for the purchase of goods for operation of…

Q: Bill Rose owns Rose Sporting Goods. At the beginning of the year, Rose Sporting Goods had $18,000 in…

A: Cost of goods sold budget shows the expenses incurred for producing a product. Cost of goods sold is…

Q: Cost of merchandise sold reported on the income statement was $403,600. The accounts payable balance…

A: Total Purchase of inventory = Cost of merchandise sold + Increase in inventory = $403,600 + $62,700…

Q: The company's inventory turnover ratio is _______.

A: Inventory turnover ratio is a financial ratio that measures the efficiency and effectiveness of a…

Q: Sellall Department Stores reported the following amounts as of its December 31 year-end:…

A: The gross profit is calculated as difference between sales and cost of goods sold. The gross profit…

Q: The following events occurred at Moore's Hobbies and Crafts store during the most recent fiscal…

A: The Merchandise Inventory account is a crucial component of a company's accounting system,…

Q: The Blue Moon Corporation has ending inventory of $400,000, account receivable of $330,000, and cost…

A: Inventory = $400,000Cost of Good Sold = $2,700,000

Q: Plum Corporation began the month of May with $700,000 of current assets, a current ratio of 2.50:1,…

A: As question has to calculate the current ratio , acid test ratio and working capital after each…

Q: Riley Kilgo Inc. purchased inventory costing $100,000 and sold 80% of the goods for $240,000. All…

A: Journal entries are the primary reporting of the transactions in the books of accounts. It is…

Q: Whispering Winds Corporation uses a perpetual inventory system and had inventory worth $88,500 at…

A: Th balance in the inventory account or the ending inventory is the cost of goods which are not sold…

Q: a. The preceding paragraph describes five accounting events: (1) a sales transaction, (2) the first…

A: Fifo Method assumes that units purchased first should be used first to make sales hence item in…

Q: Craig Ferguson Company had the following account balances at year-end: cost of goods sold $70,000;…

A: Journal Entry:— It is an act of recording transactions in books of account when transactions occur.…

Q: At the beginning of Year 2, the Redd Company had the following balances in its accounts:      Cash…

A: The horizontal statement model has different financial statements such as balance sheet, income…

Q: Apply the COGS equation used on the bottom of page 6-3 of the VLN to the following data set to…

A: The cost of goods sold is calculated as difference between cost of goods available for sale and…

Q: The Brick Company had cash sales of $226,200 for Year 1, its first year of operation. On April 2,…

A: Calculation of units sold:   Units First purchase 164 Second Purchase 123 Closing inventory…

Q: The following information relates to a company’s accounts receivable: gross accounts receivable…

A: Accounts receivables refer to that amount which is yet to be received from the customers to whom…

Q: For most of the recent year, John's Shoe Store had sales of $930,000 and cost of goods sold at…

A: Given: Cost of goods sold = $625,000 Beginning inventory = $230,000 Closing inventory = $170,000

Q: Powell Company began the Year 3 accounting period with $44,000 cash, $90,000 inventory. $64,000…

A: The objective of the question is to understand how various business transactions affect the…

Q: LaRoe Lawns’ inventory increased during the year by $5.9 million. Its accounts payable increased by…

A: Formula,  Merchandise purchase         = (Cost of goods sold + Increase in inventory)   Cash paid…

Q: Presented below is information for Flint Company: Beginning of the year accounts receivable balance…

A: The initial, methodical recording of all monetary business transactions is called a journal entry.…

Q: The balance in Accounts Receivable at the beginning of the year was $520,000. The balance in…

A: Credit sales is a term in which the goods is transferred to the customer on a credit basis. In which…

Cash Book

So, before coming to the topic of cash books, I will let you briefly explain about the cash so that you all can be familiar with the word cash. Cash comes under the category of the current asset which is used as a medium of exchange for all the financial transactions in the firm. Cash is something that is universally accepted as a mode of payment. So, now comes to the topic i.e., cash book.