How much cash did the company actually collect from its customers during Year 2? Show your work.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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How much cash did the company actually collect from its customers during Year 2? Show your work. 

Income statement Year ended Dec. 31, Year 2
Revenues
Total sales revenues
S 1,560,000
Expenses
Cost of goods sold
Wages expense
Supplies expense
Rent expense
Depreciation expense
Insurance expense
Utilities expense
Interest expense
Total expenses
668,000
186,000
46,000
120,000
20,000
100,000
165,000
84,000
1,389,000
$ 171,000
Net income
Transcribed Image Text:Income statement Year ended Dec. 31, Year 2 Revenues Total sales revenues S 1,560,000 Expenses Cost of goods sold Wages expense Supplies expense Rent expense Depreciation expense Insurance expense Utilities expense Interest expense Total expenses 668,000 186,000 46,000 120,000 20,000 100,000 165,000 84,000 1,389,000 $ 171,000 Net income
Balance sheets
Dec. 31, Year 2
Dec. 31, Year 1
Assets
Cash
Accounts receivable
Supplies
Prepaid insurance
Prepaid rent
Inventory
280,000
268,000
180,000
200,000
20,000
40,000
30,000
22,000
60,000
24,000
300,000
870,000
270,000
824,000
480,000
Total current assets
Equipment
Accumulated depreciation
Land
480,000
(100,000)
80,000
(80,000)
80,000
Other non-current assets
Total assets
100,000
1,430,000
110,000
1,414,000
Liabilities and Stockholders' Equity
Accounts payable
Wages payable
Interest payable
Utilities payable
140,000
32,000
16,000
170,000
48,000
18,000
56,000
62,000
250,000
160,000
Total current liabilities
292,000
Notes payable
160,000
Other non-current liabilities
40,000
450,000
600,000
380,000
66,000
518,000
600,000
296,000
Total liabilities
Contributed capital
Retained earnings
Total stockholders equity
Total liabilities + stockholders equity S
980,000
1,430,000
896,000
1,414,000
Transcribed Image Text:Balance sheets Dec. 31, Year 2 Dec. 31, Year 1 Assets Cash Accounts receivable Supplies Prepaid insurance Prepaid rent Inventory 280,000 268,000 180,000 200,000 20,000 40,000 30,000 22,000 60,000 24,000 300,000 870,000 270,000 824,000 480,000 Total current assets Equipment Accumulated depreciation Land 480,000 (100,000) 80,000 (80,000) 80,000 Other non-current assets Total assets 100,000 1,430,000 110,000 1,414,000 Liabilities and Stockholders' Equity Accounts payable Wages payable Interest payable Utilities payable 140,000 32,000 16,000 170,000 48,000 18,000 56,000 62,000 250,000 160,000 Total current liabilities 292,000 Notes payable 160,000 Other non-current liabilities 40,000 450,000 600,000 380,000 66,000 518,000 600,000 296,000 Total liabilities Contributed capital Retained earnings Total stockholders equity Total liabilities + stockholders equity S 980,000 1,430,000 896,000 1,414,000
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