Worldwide Corp.'s statement of financial position accounts as of December 31, 2023 and 2022 and information relating to 2019 activities are presented below. December 31, 2023 2022 Assets Cash $440,000 $160,000 Short-term investments 800,000 – Accounts receivable (net) 1,050,000 1,140,000 Inventory 1,160,000 1,020,000 Long-term investments 400,000 600,000 Plant assets 3,100,000 2,000,000 Accumulated depreciation (700,000) (900,000) Patent 280,000 300,000 Total assets $6,530,000 $4,320,000 Liabilities and Equity Accounts payable $1,490,000 $1,210,000 Other accrued liabilities 200,000 250,000 Notes payable (nontrade) 560,000 – Common Stock-$10 par 1,600,000 1,400,000 Additional paid-in capital 800,000 500,000 Retained earnings 1,880,000 960,000 Total equity and liabilities $6,530,000 $4,320,000 Information relating to 2023 activities:•Net income for 2023 was $1,220,000. This amount includes net sales revenue of $4,500,000 and cost of goods sold of $2,200,000.•Equipment costing $1,000,000 and having a carrying amount of $320,000 was sold in 2023 for $360,000.•A long-term investment was sold in 2023 for $345,000. There were no other transactions affecting long-term investments in 2023.•20,000 ordinary shares were issued in 2023 for $25 a share.•Short-term investments consist of treasury bills maturing on 9/30/24.Compute cash paid for merchandise. Group of answer choices $2,200,000 $2,620,000 $2,340,000 $2,060,000
Worldwide Corp.'s statement of financial position accounts as of December 31, 2023 and 2022 and information relating to 2019 activities are presented below. December 31, 2023 2022 Assets Cash $440,000 $160,000 Short-term investments 800,000 – Accounts receivable (net) 1,050,000 1,140,000 Inventory 1,160,000 1,020,000 Long-term investments 400,000 600,000 Plant assets 3,100,000 2,000,000 Accumulated depreciation (700,000) (900,000) Patent 280,000 300,000 Total assets $6,530,000 $4,320,000 Liabilities and Equity Accounts payable $1,490,000 $1,210,000 Other accrued liabilities 200,000 250,000 Notes payable (nontrade) 560,000 – Common Stock-$10 par 1,600,000 1,400,000 Additional paid-in capital 800,000 500,000 Retained earnings 1,880,000 960,000 Total equity and liabilities $6,530,000 $4,320,000 Information relating to 2023 activities:•Net income for 2023 was $1,220,000. This amount includes net sales revenue of $4,500,000 and cost of goods sold of $2,200,000.•Equipment costing $1,000,000 and having a carrying amount of $320,000 was sold in 2023 for $360,000.•A long-term investment was sold in 2023 for $345,000. There were no other transactions affecting long-term investments in 2023.•20,000 ordinary shares were issued in 2023 for $25 a share.•Short-term investments consist of treasury bills maturing on 9/30/24.Compute cash paid for merchandise. Group of answer choices $2,200,000 $2,620,000 $2,340,000 $2,060,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Worldwide Corp.'s statement of financial position accounts as of December 31, 2023 and 2022 and information relating to 2019 activities are presented below.
•Net income for 2023 was $1,220,000. This amount includes net sales revenue of $4,500,000 and cost of goods sold of $2,200,000.
•Equipment costing $1,000,000 and having a carrying amount of $320,000 was sold in 2023 for $360,000.
•A long-term investment was sold in 2023 for $345,000. There were no other transactions affecting long-term investments in 2023.
•20,000 ordinary shares were issued in 2023 for $25 a share.
•Short-term investments consist of treasury bills maturing on 9/30/24.
Compute cash paid for merchandise.
|
|
December 31, |
|
|
2023 |
| | | 2022 |
Assets
| Cash | $440,000 | $160,000 |
| Short-term investments | 800,000 | – |
| 1,050,000 | 1,140,000 |
| Inventory | 1,160,000 | 1,020,000 |
| Long-term investments | 400,000 | 600,000 |
| Plant assets | 3,100,000 | 2,000,000 |
| (700,000) | (900,000) |
| Patent | 280,000 | 300,000 |
| | Total assets | $6,530,000 | $4,320,000 |
Liabilities and Equity
| Accounts payable | $1,490,000 | $1,210,000 |
| Other accrued liabilities | 200,000 | 250,000 |
| Notes payable (nontrade) | 560,000 | – |
| Common Stock-$10 par | 1,600,000 | 1,400,000 |
| Additional paid-in capital | 800,000 | 500,000 |
| 1,880,000 | 960,000 |
| | Total equity and liabilities | $6,530,000 | $4,320,000 |
Information relating to 2023 activities:
•Net income for 2023 was $1,220,000. This amount includes net sales revenue of $4,500,000 and cost of goods sold of $2,200,000.
•Equipment costing $1,000,000 and having a carrying amount of $320,000 was sold in 2023 for $360,000.
•A long-term investment was sold in 2023 for $345,000. There were no other transactions affecting long-term investments in 2023.
•20,000 ordinary shares were issued in 2023 for $25 a share.
•Short-term investments consist of treasury bills maturing on 9/30/24.
Compute cash paid for merchandise.
Group of answer choices
$2,200,000
$2,620,000
$2,340,000
$2,060,000
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