Selected data taken from the accounting records of Laser Inc. for the current year ended December 31 are as follows:Accrued operating expensesAccounts payable (merchandise creditors)InventoriesPrepaid expensesBalanceDecember 31b. Cash payments for operating expenses.$5,59041,73077,3503,250BalanceJanuary 1$6,11046,02084,1103,900IDES R My account | Roku...2019 RENTALS SCRDuring the current year, the cost of goods sold was $448,500, and the operating expenses other than depreciation were $78,000. The direct method is used for presenting the cash flows from (used for) operating activities on the statement of cash flows.Determine the amount reported on the statement of cash flows for:a. Cash payments for merchandise.

Under Direct method of cash flow, we make use of actual amount of inflow, or the cash received and the actual amount of cash outflow or the cash paid are added and deducted. Thus, we convert the operating results from accrual basis to cash basisAnswers) a) Cash payment for merchandise $ 446,030 b) Cash payment for operating expenses $ 77,870 Working: Cost of goods sold $ 448,500 less: decrease in inventories (77,350-84,110) $ -6,760 Add: Decrease in accounts payable (46,020-41,730) $ 4,290 Cash payment for merchandise $ 446,030 Operating expenses $ 78,000 Add: Decrease in accrued operating expenses (6110-5590) $ 520 less: Decrease in prepaid expenses (3250-3900) $ -650 Cash payment for operating expenses $ 77,870

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ected data taken from the accounting records of Laser Inc. for the current year ended December 31 are as follows: Accrued operating expenses Accounts payable (merchandise creditors) Inventories Prepaid expenses Balance December 31 a. Cash payments for merchandise. $ b. Cash payments for operating expenses. $5,590 41,730 77,350 3,250 Balance January 1 $6,110 46,020 84,110 3,900 During the current year, the cost of goods sold was $448,500, and the operating expenses other than depreciation were $78,000. The direct method is used for presenting the cash flows from (used for) operating activities on the statement of ca Determine the amount reported on the statement of cash flows for:

ected data taken from the accounting records of Laser Inc. for the current year ended December 31 are as follows: Accrued operating expenses Accounts payable (merchandise creditors) Inventories Prepaid expenses Balance December 31 a. Cash payments for merchandise. $ b. Cash payments for operating expenses. $5,590 41,730 77,350 3,250 Balance January 1 $6,110 46,020 84,110 3,900 During the current year, the cost of goods sold was $448,500, and the operating expenses other than depreciation were $78,000. The direct method is used for presenting the cash flows from (used for) operating activities on the statement of ca Determine the amount reported on the statement of cash flows for:

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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