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

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

FINANCIAL ACCOUNTING
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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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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