The income statement for Electronic Wonders reports net sales of $91,748 million and cost of goods sold of $69,268 million. An examination of balance sheet amounts indicates accounts receivable increased $1,732 million, inventory increased $882 million, and accounts payable to suppliers decreased $1,966 million. Required: Using the direct method, calculate (1) cash received from customers and (2) cash paid to suppliers. (Enter your answers in millions (l.e., $10,100,000 should be entered as 10.1).) Net sales Cash received from customers Cost of goods sold Purchases Cash paid to suppliers

The income statement for Electronic Wonders reports net sales of $91,748 million and cost of goods sold of $69,268 million. An examination of balance sheet amounts indicates accounts receivable increased $1,732 million, inventory increased $882 million, and accounts payable to suppliers decreased $1,966 million. Required: Using the direct method, calculate (1) cash received from customers and (2) cash paid to suppliers. (Enter your answers in millions (l.e., $10,100,000 should be entered as 10.1).) Net sales Cash received from customers Cost of goods sold Purchases Cash paid to suppliers

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Vaughn Company completed its first year of operations on December 31, 2022. Its initial income statement showed that Vaughn had sales revenue of $196,100 and operating expenses of $89,100. Accounts receivable and accounts payable at year-end were $53,500 and $27,700, respectively. Assume that accounts payable related to operating expenses. Ignore income taxes.Compute net cash provided by operating activities using the direct method. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).)
Russell Co. reports sales revenue of $30,000 and interest revenue of $5,000. Its comparative balance sheet shows that accounts receivable decreased $4,000 and interest receivable increased $1,000. Compute cash provided by operating activities using the direct method.
Ultra Day Spa provided $89,900 of services during Year 1. All customers paid for the services with credit cards. Ultra submitted the credit card receipts to the credit card company immediately. The credit card company paid Ultra cash in the amount of face value less a 2 percent service charge. Required a. Show the credit card sales (Event 1) and the subsequent collection of accounts receivable (Event 2) in a horizontal statements model. In the Statement of Cash Flows column, indicate whether the item is an operating activity (OA), investing activity (IA), or financing activity (FA). Leave blank to indicate that an element is not affected by the event. b. Based on this information alone, answer the following questions: (1) What is the amount of total assets at the end of the accounting period? (2) What is the amount of revenue reported on the income statement? (3) What is the amount of cash flow from operating activities reported on the statement of cash flows?
Use the information below in preparing the Statement of Cash Flows of the firm for the year ended December 31, 2021 using the direct method. Cash balance on January 1, 2021 is ₱98,100. Cash transactions during 2021 Amount Receipts from services rendered 893,500 Collections from customer accounts, including interest 420,120 Proceeds from sale of old furniture 8,600 Loan proceeds from Fairbank 342,700 Payment to creditors, including interest 304,320 Payment of operating expenses 784,590 Payment of interest on loan with Fairbank 48,150 Purchase of new repair equipment 65,000 Payment of loan principal 280,000 Withdrawal of owner 60,000
Hansaben
(1) Use the information below to compute the days in the cash conversion cycle for each company. (2) Which company is more effective at managing cash based on this measure? Days' sales in accounts receivable Days' sales in inventory Days' payable outstanding Required 1 Required 2 Sparta Company 36 22 29 Complete this question by entering your answers in the tabs below. Cash conversion cycle Athens Company 49 26 34 Use the information below to compute the number of days in the cash conversion cycle for each company. Sparta Athens Company Company
Analyze this transaction as an asset, liability, paid in capital or retained earnings(plus or a negative) collected $235,000 in cash from credit customers.
Please let me know which part of the cash flow calculations or cashflow statement setup/structure that I am doing wrong. The cashflow change should be $86,000(from the balance sheet) but I got a total of -$159,000. Income statement Assets 20X1 20X0 Difference 20X1 20X0 Difference Net credit sales Current assets $7,200,000 $6,500,000 $700,000 Cash Cost of goods sold $450,000.00 $364,000.00 $86,000 4,320,000 3,900,000 $420,000 Accounts receivable—net Gross profit 692,000 625,000 $67,000 2,880,000 2,600,000 $280,000 Inventory Operating expenses (including income taxes) 723,000 610,000 $113,000 2,376,000 2,145,000 $231,000 Prepaid expenses Net income 50,000 70,000 ($20,000) $504,000 $455,000 $49,000 Total current assets 1,915,000 1,669,000 $246,000 Long-term investments Cash flow 150,000 20,000…
The income statement for Electronic Wonders reports net sales of $91,758 million and cost of goods sold of $69,278 million. An examination of balance sheet amounts indicates accounts receivable increased $1,733 million, inventory increased $883 million, and accounts payable to suppliers decreased $1,967 million.Required:Using the direct method, calculate (1) cash received from customers and (2) cash paid to suppliers.
CC1) La Sorpresa, S.A., a leading local company, knows that in order to know the rotations necessary to quantify its cash cycle, it is essential to apply some financial ratios. So how often it pays its suppliers, how often it rotates its inventories, and how often it charges its customers, will have to be calculated with the following data: Total sales of the company..........................$4'586,109.47Proportion of credit sales....................... 60%Average customer balance............................. $ 343,958.21Cost of sales ratio...................... 55%Average inventory balance...................... $ 420,393.37Average supplier balance................... $ 288,004.21Beginning Inventory................................................ $ 385,554.55 The company spends about $8.125 million in operating cycle investments. With this data it is necessary to calculate: 1) The operating cycle.2) The cash conversion cycle.3) The cash turnover.4) The minimum cash balance.
The controller of Newstrom Software, Inc., provides the following information as the basis for a statement of cash flows: Cash collected from customers $785,400 Income taxes paid $58,300 Cash paid for interest 22,100 Payment of dividends 35,000 Cash paid to employees and other suppliers of goods and services 221,750 Principal payments on mortgage payable 60,000 Cash paid to suppliers of merchandise 395,540 Principal payments on long-term debt 22,000 Cash received from the issuance of long-term debt 40,000 Proceeds from the issuance of common stock 85,000 Cash received from disposal of equipment 42,500 Purchase of equipment 120,000 Cash received from sale of long-term investments 71,400 Purchase of long-term investments 75,800 Required: Use a minus sign to indicate any cash outflows: 1. Using the information provided above, calculate the net cash provided (used) by operating activities. 2. Using the information provided above, calculate the net cash…
Vishu