Q#18: Mash Company, a service provider, has asked for your assistance with their cash flow analysis. Mash makes all sales to customers on account and purchases 100% of the supplies, on account, from Mark Company. Mash provides the following list of normal account balances as well as the company's income statement activity for the twelve months ended 12/31/20X5. Ref. No. Account Title 1 Cash 2 Accounts Receivable 3 5 ****2=9 Prepaid Insurance Expense Prepaid Advertising Expense Supplies Equipment Accumulated Depreciation Land Accounts Payable-Mark Co. Dividends Payable Rent Payable Utilities Payable 12/31/20X4 12/31/20XS Ref. No. Account Title Wages Payable $13,320 $13,770 6,500 12,000 Dividends 7,830 9,570 Sales Revenue 43.200 40,800 Advertising Expense 4,500 6,000 Depreciation Expense 108,000 96,000 Insurance Expense 37,400 47,770 Maintenance Expense 0 28,000 750 1,050 6,000 8,000 1,800 600 2,100 720 13 14 15 16 17 18 19 20 21 22 23 24 Rent Expense Supplies Expense Utilities Expense 12/31/20X4 12/31/20X5 $1,800 $2.200 15,000 280,000 32,600 17,680 6,480 5,000 24,300 16,500 6,650 148,000 1.510 Wage Expense Gain on Equipment Disposal Select the answer choice below that shows the combined cash inflow or combined (outflow) from the following 3 items: (i) cash collected from customers; (ii) cash paid for insurance, and (iii) cash paid for rent. A. $243,720 B. $249,220 C. $242,280 D. $244,020 E. $247,480
Q#18: Mash Company, a service provider, has asked for your assistance with their cash flow analysis. Mash makes all sales to customers on account and purchases 100% of the supplies, on account, from Mark Company. Mash provides the following list of normal account balances as well as the company's income statement activity for the twelve months ended 12/31/20X5. Ref. No. Account Title 1 Cash 2 Accounts Receivable 3 5 ****2=9 Prepaid Insurance Expense Prepaid Advertising Expense Supplies Equipment Accumulated Depreciation Land Accounts Payable-Mark Co. Dividends Payable Rent Payable Utilities Payable 12/31/20X4 12/31/20XS Ref. No. Account Title Wages Payable $13,320 $13,770 6,500 12,000 Dividends 7,830 9,570 Sales Revenue 43.200 40,800 Advertising Expense 4,500 6,000 Depreciation Expense 108,000 96,000 Insurance Expense 37,400 47,770 Maintenance Expense 0 28,000 750 1,050 6,000 8,000 1,800 600 2,100 720 13 14 15 16 17 18 19 20 21 22 23 24 Rent Expense Supplies Expense Utilities Expense 12/31/20X4 12/31/20X5 $1,800 $2.200 15,000 280,000 32,600 17,680 6,480 5,000 24,300 16,500 6,650 148,000 1.510 Wage Expense Gain on Equipment Disposal Select the answer choice below that shows the combined cash inflow or combined (outflow) from the following 3 items: (i) cash collected from customers; (ii) cash paid for insurance, and (iii) cash paid for rent. A. $243,720 B. $249,220 C. $242,280 D. $244,020 E. $247,480
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Transcribed Image Text:Ref. No. Account Title
Cash
Accounts Receivable
Prepaid Insurance Expense
Prepaid Advertising Expense
Supplies
6 Equipment
7 Accumulated Depreciation
8
9
10
11
12
1
2
1:40
3
Q#18: Mash Company, a service provider, has asked for your assistance with their cash flow analysis. Mash makes all sales
to customers on account and purchases 100% of the supplies, on account, from Mark Company. Mash provides the following list
of normal account balances as well as the company's income statement activity for the twelve months ended 12/31/20X5.
4
5
Land
Accounts Payable-Mark Co
Dividends Payable
Rent Payable
Utilities Payable
A. $243,720
Photo
12/31/20X4 12/31/20XS
$13,320 $13,770
6,500
12,000
7,830
43,200
4.500
108,000
37,400
0
750
6,000
1,800
600
9,570
40,800
6.000
96,000
47,770
28,000
1,050
8,000
2,100
720
Ref. No. Account Title
13 Wages Payable
Dividends
Sales Revenue
14
15
16
17
18
19
20
21
22
23
24
Advertising Expense
Depreciation Expense
Insurance Expense
Maintenance Expense
Rent Expense
Supplies Expense
Utilities Expense
LTE 14
Wage Expense
Gain on Equipment Disposal
Done
(+)
12/31/20X4 12/31/20X5
$1,800
$2,200
15.000
280,000
32,600
17,680
6,480
5,000
24,300
Select the answer choice below that shows the combined cash inflow or combined (outflow) from the following 3 items: (i) cash
collected from customers; (ii) cash paid for insurance, and (iii) cash paid for rent.
B. $249,220 C. $242,280 D. $244,020 E. $247,480
16,500
6,650
148,000
1,510
Expert Solution
Step 1
Under accrual basis of accounting the revenues are recognized when earned irrespective of whether cash is received or not , similarly expenses are recorded when incurred irrespective of when paid in cash , hence to change it into cash basis we take into account the changes in current assets and current liabilities.
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