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 $310 million. Prepare a summary entry that represents the net effect of merchandise purchases during the reporting period.
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Shown below in T-account format are the beginning and ending balances ($ in millions) of both inventory and accounts payable. Inventory 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 $300 million. 2. Prepare a summary entry that represents the net effect of merchandise purchases during the reporting period.
Shown below in T-account format are the beginning and ending balances ($ in millions) of both inventory and accounts payable. Debit Beginning balance Ending balance Inventory 150.0 154.2 Credit Accounts Payable Debit Credit 48.0 Beginning balance 53.4 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 $360 million. 2. Prepare a summary entry that represents the net effect of merchandise purchases during the reporting period. Complete this question by entering your answers in the tabs below. Required 1 Required 2 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 $360 million. Note: Enter your answer in millions rounded to 1 decimal place (i.e., 5,500,000 should be entered as 5.5). Cash paid to suppliers million
All purchases and also sales were made with cash ?
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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 information to determine the amount of cash paid for merchandise. Show calculations. Cost of merchandise sold per income statement 262,000 Accounts payable balance change during period (19,000) Inventory balance change during period 5,000
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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

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