Use the reconciliation approach to determine cash paid for inventory for the Ferris Company for 2012. Assume all inventory is bought onaccount and the accounts payable account is used only for inventory. Beginning and ending balances of merchandise inventory were$6,200 and $9,400 respectively. Beginning and ending balances of accounts payable were $2000 and $1,400 respectively. Sales revenueamounted to $68, 512 and cost of goods sold was $41,904.

Step 1: Reconciliation FormulaThe formula for cash paid for inventory is: Cash Paid for…

Answered: Use the reconciliation approach to…

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter11: The Statement Of Cash Flows

Section: Chapter Questions

Problem 12MCQ: Smoltz Company reported the following information for the current year: cost of goods sold,...

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Shown below In T-account format are the beginning and ending balances ($ in millions) of both Inventory and accounts payable. Inventory Debit 110.0 115.0 Beginning balance Ending balance Accounts Payable Debit Credit Credit 32.0 Beginning balance. 35.8 Ending balance Required: 1. Use a T-account analysis to determine the amount of cash paid to suppliers of merchandise during the reporting period if cost of goods sold was $280 million. 2. Prepare a summary entry that represents the net effect of merchandise purchases during the reporting period.
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Subject: accounting Shown below in T-account format are the beginning and ending balances ($ in millions) of both inventory and accounts payable. Inventory Debit Credit Beginning balance 125.0 Ending balance 126.7 Accounts Payable Debit Credit 38.0 Beginning balance 42.4 Ending balance Required: Use a T-account analysis to determine the amount of cash paid to suppliers of merchandise during the reporting period if cost of goods sold was $310 million. Prepare a summary entry that represents the net effect of merchandise purchases during the reporting period.
Shown below in T-account format are the beginning and ending balances ($ in millions) of both inventory and accounts payable. Inventory Beginning balance 90 Ending balance 93 Accounts Payable Beginning balance 14 Ending balance 16 Required: 1. Use a T-account analysis to determine the amount of cash paid to suppliers of merchandise during the report- ing period if cost of goods sold was $300 million. 2. Prepare a summary entry that represents the net effect of merchandise purchases during the reporting period.
Masthead Company's comparative balance sheets included an inventory of $180,400 at December 31, 2009, and $241,200 at December 31, 2010. Masthead's comparative balance sheets also included accounts payable of $85,400 at December 31, 2009, and $78,400 at December 31, 2010. Masthead's accounts payable balances are composed solely of amounts due to suppliers for purchases of inventory on account. Cost of goods sold, as reported by Masthead on its 2010 income statement, amounted to $1,200,000. What is the amount of cash payments for inventory that Masthead will report in the Operating Activities category of its 2010 statement of cash flows assuming that the direct method is used?
Use the following excerpts from Huckleberry Company's financial statements and complete the worksheets below to determine cash paid to suppliers for inventory in 2018. From Balance Sheets: Inventory Accounts Payable Dec. 31, 2018 $ 74,000 55,000 Dec. 31, 2017 $82,000 58,000 From Income Statement: 2018 Cost of Goods Sold $520,000 PLEASE NOTE: You are to follow the format shown in the textbook. Step01: Inventory Purchased ( Select 1 [ Select ] [ Select ] | Select ] [ Select ] [ Select ] [ Select ] [ Select ] [ Select ] [ Select ] Step02: Cash paid for Inventory Purchases | Select ] [ Select ] [ Select ] [ Select ] [ Select ] [ Select ] [ Select ] [ Select ] [ Select ] | Select ] > > > > > > > > > > > >
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Dunnsmore Company reported cost of goods sold of $318,450 on its 20X1 income statement. Other information for Dunnsmore is as follows: Inventories Accounts payable Cost of goods sold Add: Increase in inventory 1/1/20X1 $ 37,200 23,100 Required: Prepare a schedule showing the amount of cash Dunnsmore paid to suppliers in 20X1. 12/31/20x1 $ 43,400 29,900 Inventory purchases Less: Increase in accounts payable Cash paid to suppliers Answer is not complete. ✓$ 318,450 6,200 (6,800) $ 317,850
Use the following financial information to find the entry you would make on an income statement for COST OF GOODS SOLD for the year ended December 31, 2011: Gross Sales, $241,000; Sales Returns and Allowances, $5,600; Sales Discounts, $1,000; Merchandise Inventory, January 1, 2011, $62,500; Merchandise Inventory, December 31, 2011, $70,200; net purchases, $95,600; Freight In, $525; Salaries, $93,800; Rent, $17,900; Utilities, $1,325; Insurance, $2,025; and Income Tax, $16,950. O $38,200 $70,525 O $88,425 $234,400 X
On August 20, 2017, Lockman Limited incurs the following costs related to inventory, all of which were paid in cash: Invoice (inventory) cost Sales tax on inventory purchased Cost to market inventory to customers Inventory delivery cost Cost to insure inventory during shipment/delivery Inventory packaging and inspection costs Cost to clean inventory sitting on retail shelves for too long TOTAL 125,000 5,000 Account 800 3,000 200 800 500 135,300 What journal entry should Lockman Limited record associated with these costs? Debit 105.000.00 Credit
Given the following information, answer the questions provided in the space below. Cash Gross accounts receivable Allowance for doubtful accounts Inventory Prepaid expenses Total long-term assets (net) Total assets Net credit sales Cost of goods sold Gross profit Net income 2019 $ 14,400 $ $ 106,300 $ $ 98,700 7,200 115,600 $ 108,700 7,000 $ 131,550 $ 140,000 5 363,050 $ 358,700 $ 976,600 $ 902.500 $ 598,000 $ 576,000 $ 378,600 $ 326,500 13,450 17,000 $ $ $ $ 9,800 $ 2018 11,500 5,000 $ Time left 2:15: 1. If target accounts receivable turnover is 30 days, how well is this company managing its accounts receivable in 2019? Be sure to include your calculations. 2. If target inventory turnover is 80 days, how well is this company managing its inventory in 2019? Be sure to include your calculations. 3. All of this company's competitors have a return on assets of 3.2-4,4%. How does this company compare? Are they better or worse?
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