Selected data and add1t1onal 1nformat1on from the company's records are presented below Balance Sheet Data Cash 2014 R235,000 2013 R246,000 Accounts receivable R120,000 R150,000 Inventories 56,000 50,000 Accounts payable 38,000 70,000 Salaries payable 10,000 5,000 Equipment 110,000 70,000 Accumulated deprec1at1on 28,000 32,000 Bonds payable 100,000 200,000 Common stock 300,000 200,000 Retained earnings 76,000 40,
Selected data and add1t1onal 1nformat1on from the company's records are presented below Balance Sheet Data Cash 2014 R235,000 2013 R246,000 Accounts receivable R120,000 R150,000 Inventories 56,000 50,000 Accounts payable 38,000 70,000 Salaries payable 10,000 5,000 Equipment 110,000 70,000 Accumulated deprec1at1on 28,000 32,000 Bonds payable 100,000 200,000 Common stock 300,000 200,000 Retained earnings 76,000 40,
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Mary Kay Cosmetics
Selected data and add1t1onal 1nformat1on from the company's records are presented below
Balance Sheet Data |
Cash |
2014 R235,000 |
2013 R246,000 |
|
|
R120,000 |
R150,000 |
|
Inventories |
56,000 |
50,000 |
|
Accounts payable |
38,000 |
70,000 |
|
Salaries payable |
10,000 |
5,000 |
|
Equipment |
110,000 |
70,000 |
|
Accumulated deprec1at1on |
28,000 |
32,000 |
|
Bonds payable |
100,000 |
200,000 |
|
Common stock |
300,000 |
200,000 |
|
|
76,000 |
40,000 |
Income Statement Data
Net sales Cost of goods sold
2014
R920,000 700,000
Operating expenses (excluding |
160,000 |
Net income (Includes depreciation expense and gain) |
56,000 |
Gain on sale of equipment |
4,000 |
Additional Information:
- Equipment with a cost of R30,000 and a book value of R18,000 was sold for R22,000 during 2014
- Ordinary shares were issued to retire bonds payable during 2014
- The only items affecting retained earnings m 2014 were net income and d1v1dends declared and paid
Required:
- What amount of cash was collected from customers during 2014? (3)
- What Is the amount paid to suppliers for purchases of merchandise during 2014? (3)
- What 1s the amount paid for operating expenses during 2014? (3)
- What amount was paid to acquire equipment during 2014? (3)
- What amount was recorded as deprec1at1on expense during 2014? (3)
- What amount was declared and paid for dIvIdends during 2014? (3)
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