Determine the amount of cash paid for merchandise.

Question

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Answer 1

Question

Chapter 16, Problem 21E

To determine

Determine the amount of cash paid for merchandise.

Expert Solution

Answer to Problem 21E

Determine the amount of cash paid for merchandise.

Cash paid for merchandise=[Cost of Goods Sold (+Decrease in Accounts Payable/Increase in Inventory OR − Increase in Accounts Payable /Decrease in Inventory)]=(Cost of goods sold + Decrease in Accounts Payable − Decrease in Inventory)=1,031,550+$9,660−$15,410=$1,025,800

Therefore, the amount of cash paid for merchandise is $1,025,800.

Explanation of Solution

Statement of cash flows: It is one of the financial statement that shows the cash and cash equivalents of a company for a particular period. It determines the net changes in cash through reporting the sources and uses of cash due to the operating, investing, and financing activities of a company.

Direct method: This method uses the basis of cash for preparing the cash flows statement.

Cash flows from operating activities: In this direct method, cash flow from operating activities is computed by using all cash receipts and cash payments during the year.

Cash Receipts: It encompasses all the cash receipts from sale of goods and on account receivable.

Cash Payments: It encompasses all the cash payments that are made to suppliers of goods and all expenses that are paid.

The below table shows the way of calculation of cash flows from operating activities:

Cash flows from operating activities (Direct method)

Add: Cash receipts.

Cash receipt from customer

Less: Cash payments:

To supplier

For operating expenses

Income tax expenses

Net cash provided from or used by operating activities

Cash payments for purchase represents the total amount of cash paid for the purchase as well as to the accounts payable.

Therefore, the amount of cash paid for merchandise is $1,025,800.

Working notes:

Calculate increase or decrease in merchandise inventories:

Increase or decrease inmerchandise inventories}=(Beginning balance - Ending balance)=($193,430−$178,020)=$15,410(Decrease)

Calculate increase or decrease in accounts payable:

Increase or decrease in accounts payable}=(Beginning balance - Ending balance)=($105,800−$96,140)=$9,660(Decrease)

b.

To determine

Determine the amount of cash paid for operating expenses.

b.

Expert Solution

Answer to Problem 21E

Determine the amount of cash paid for operating expenses.

Cash paid for operating expenses}=[Operating expenses other than depreciation (+Decrease in accrued expense payable OR − Increase in accrued expense tax payable)]=(Operating expenses other than depreciation + Decrease in iaccrued expense payable)=($179,400+$1,380)=$180,780

Therefore, the amount of cash paid for operating expenses is $180,780.

Explanation of Solution

Cash payments for accrued expense represent the total amount of cash paid for the operating expense as well as to the accrued expense payable.

Therefore, the amount of cash paid for operating expenses is $180,780.

Working note:

Calculate increase or decrease in operating expenses / accrued expense payable:

Increase or decrease in operating expenses/accrued expense payable}=(Beginning balance - Ending balance)=($14,030−$12,650)=$1,380(Decrease)

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Answer 2

Question

Chapter 16, Problem 21E

To determine

Determine the amount of cash paid for merchandise.

Expert Solution

Answer to Problem 21E

Determine the amount of cash paid for merchandise.

Cash paid for merchandise=[Cost of Goods Sold (+Decrease in Accounts Payable/Increase in Inventory OR − Increase in Accounts Payable /Decrease in Inventory)]=(Cost of goods sold + Decrease in Accounts Payable − Decrease in Inventory)=1,031,550+$9,660−$15,410=$1,025,800

Therefore, the amount of cash paid for merchandise is $1,025,800.

Explanation of Solution

Statement of cash flows: It is one of the financial statement that shows the cash and cash equivalents of a company for a particular period. It determines the net changes in cash through reporting the sources and uses of cash due to the operating, investing, and financing activities of a company.

Direct method: This method uses the basis of cash for preparing the cash flows statement.

Cash flows from operating activities: In this direct method, cash flow from operating activities is computed by using all cash receipts and cash payments during the year.

Cash Receipts: It encompasses all the cash receipts from sale of goods and on account receivable.

Cash Payments: It encompasses all the cash payments that are made to suppliers of goods and all expenses that are paid.

The below table shows the way of calculation of cash flows from operating activities:

Cash flows from operating activities (Direct method)

Add: Cash receipts.

Cash receipt from customer

Less: Cash payments:

To supplier

For operating expenses

Income tax expenses

Net cash provided from or used by operating activities

Cash payments for purchase represents the total amount of cash paid for the purchase as well as to the accounts payable.

Therefore, the amount of cash paid for merchandise is $1,025,800.

Working notes:

Calculate increase or decrease in merchandise inventories:

Increase or decrease inmerchandise inventories}=(Beginning balance - Ending balance)=($193,430−$178,020)=$15,410(Decrease)

Calculate increase or decrease in accounts payable:

Increase or decrease in accounts payable}=(Beginning balance - Ending balance)=($105,800−$96,140)=$9,660(Decrease)

b.

To determine

Determine the amount of cash paid for operating expenses.

b.

Expert Solution

Answer to Problem 21E

Determine the amount of cash paid for operating expenses.

Cash paid for operating expenses}=[Operating expenses other than depreciation (+Decrease in accrued expense payable OR − Increase in accrued expense tax payable)]=(Operating expenses other than depreciation + Decrease in iaccrued expense payable)=($179,400+$1,380)=$180,780

Therefore, the amount of cash paid for operating expenses is $180,780.

Explanation of Solution

Cash payments for accrued expense represent the total amount of cash paid for the operating expense as well as to the accrued expense payable.

Therefore, the amount of cash paid for operating expenses is $180,780.

Working note:

Calculate increase or decrease in operating expenses / accrued expense payable:

Increase or decrease in operating expenses/accrued expense payable}=(Beginning balance - Ending balance)=($14,030−$12,650)=$1,380(Decrease)

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Answer 3

Question

Chapter 16, Problem 21E

To determine

Determine the amount of cash paid for merchandise.

Expert Solution

Answer to Problem 21E

Determine the amount of cash paid for merchandise.

Cash paid for merchandise=[Cost of Goods Sold (+Decrease in Accounts Payable/Increase in Inventory OR − Increase in Accounts Payable /Decrease in Inventory)]=(Cost of goods sold + Decrease in Accounts Payable − Decrease in Inventory)=1,031,550+$9,660−$15,410=$1,025,800

Therefore, the amount of cash paid for merchandise is $1,025,800.

Explanation of Solution

Statement of cash flows: It is one of the financial statement that shows the cash and cash equivalents of a company for a particular period. It determines the net changes in cash through reporting the sources and uses of cash due to the operating, investing, and financing activities of a company.

Direct method: This method uses the basis of cash for preparing the cash flows statement.

Cash flows from operating activities: In this direct method, cash flow from operating activities is computed by using all cash receipts and cash payments during the year.

Cash Receipts: It encompasses all the cash receipts from sale of goods and on account receivable.

Cash Payments: It encompasses all the cash payments that are made to suppliers of goods and all expenses that are paid.

The below table shows the way of calculation of cash flows from operating activities:

Cash flows from operating activities (Direct method)

Add: Cash receipts.

Cash receipt from customer

Less: Cash payments:

To supplier

For operating expenses

Income tax expenses

Net cash provided from or used by operating activities

Cash payments for purchase represents the total amount of cash paid for the purchase as well as to the accounts payable.

Therefore, the amount of cash paid for merchandise is $1,025,800.

Working notes:

Calculate increase or decrease in merchandise inventories:

Increase or decrease inmerchandise inventories}=(Beginning balance - Ending balance)=($193,430−$178,020)=$15,410(Decrease)

Calculate increase or decrease in accounts payable:

Increase or decrease in accounts payable}=(Beginning balance - Ending balance)=($105,800−$96,140)=$9,660(Decrease)

b.

To determine

Determine the amount of cash paid for operating expenses.

b.

Expert Solution

Answer to Problem 21E

Determine the amount of cash paid for operating expenses.

Cash paid for operating expenses}=[Operating expenses other than depreciation (+Decrease in accrued expense payable OR − Increase in accrued expense tax payable)]=(Operating expenses other than depreciation + Decrease in iaccrued expense payable)=($179,400+$1,380)=$180,780

Therefore, the amount of cash paid for operating expenses is $180,780.

Explanation of Solution

Cash payments for accrued expense represent the total amount of cash paid for the operating expense as well as to the accrued expense payable.

Therefore, the amount of cash paid for operating expenses is $180,780.

Working note:

Calculate increase or decrease in operating expenses / accrued expense payable:

Increase or decrease in operating expenses/accrued expense payable}=(Beginning balance - Ending balance)=($14,030−$12,650)=$1,380(Decrease)

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Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 4

Question

Chapter 16, Problem 21E

To determine

Determine the amount of cash paid for merchandise.

Expert Solution

Answer to Problem 21E

Determine the amount of cash paid for merchandise.

Cash paid for merchandise=[Cost of Goods Sold (+Decrease in Accounts Payable/Increase in Inventory OR − Increase in Accounts Payable /Decrease in Inventory)]=(Cost of goods sold + Decrease in Accounts Payable − Decrease in Inventory)=1,031,550+$9,660−$15,410=$1,025,800

Therefore, the amount of cash paid for merchandise is $1,025,800.

Explanation of Solution

Statement of cash flows: It is one of the financial statement that shows the cash and cash equivalents of a company for a particular period. It determines the net changes in cash through reporting the sources and uses of cash due to the operating, investing, and financing activities of a company.

Direct method: This method uses the basis of cash for preparing the cash flows statement.

Cash flows from operating activities: In this direct method, cash flow from operating activities is computed by using all cash receipts and cash payments during the year.

Cash Receipts: It encompasses all the cash receipts from sale of goods and on account receivable.

Cash Payments: It encompasses all the cash payments that are made to suppliers of goods and all expenses that are paid.

The below table shows the way of calculation of cash flows from operating activities:

Cash flows from operating activities (Direct method)

Add: Cash receipts.

Cash receipt from customer

Less: Cash payments:

To supplier

For operating expenses

Income tax expenses

Net cash provided from or used by operating activities

Cash payments for purchase represents the total amount of cash paid for the purchase as well as to the accounts payable.

Therefore, the amount of cash paid for merchandise is $1,025,800.

Working notes:

Calculate increase or decrease in merchandise inventories:

Increase or decrease inmerchandise inventories}=(Beginning balance - Ending balance)=($193,430−$178,020)=$15,410(Decrease)

Calculate increase or decrease in accounts payable:

Increase or decrease in accounts payable}=(Beginning balance - Ending balance)=($105,800−$96,140)=$9,660(Decrease)

b.

To determine

Determine the amount of cash paid for operating expenses.

b.

Expert Solution

Answer to Problem 21E

Determine the amount of cash paid for operating expenses.

Cash paid for operating expenses}=[Operating expenses other than depreciation (+Decrease in accrued expense payable OR − Increase in accrued expense tax payable)]=(Operating expenses other than depreciation + Decrease in iaccrued expense payable)=($179,400+$1,380)=$180,780

Therefore, the amount of cash paid for operating expenses is $180,780.

Explanation of Solution

Cash payments for accrued expense represent the total amount of cash paid for the operating expense as well as to the accrued expense payable.

Therefore, the amount of cash paid for operating expenses is $180,780.

Working note:

Calculate increase or decrease in operating expenses / accrued expense payable:

Increase or decrease in operating expenses/accrued expense payable}=(Beginning balance - Ending balance)=($14,030−$12,650)=$1,380(Decrease)

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Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 5

Chapter 16, Problem 21E

To determine

Determine the amount of cash paid for merchandise.

Expert Solution

Answer to Problem 21E

Determine the amount of cash paid for merchandise.

Cash paid for merchandise=[Cost of Goods Sold (+Decrease in Accounts Payable/Increase in Inventory OR − Increase in Accounts Payable /Decrease in Inventory)]=(Cost of goods sold + Decrease in Accounts Payable − Decrease in Inventory)=1,031,550+$9,660−$15,410=$1,025,800

Therefore, the amount of cash paid for merchandise is $1,025,800.

Explanation of Solution

Statement of cash flows: It is one of the financial statement that shows the cash and cash equivalents of a company for a particular period. It determines the net changes in cash through reporting the sources and uses of cash due to the operating, investing, and financing activities of a company.

Direct method: This method uses the basis of cash for preparing the cash flows statement.

Cash flows from operating activities: In this direct method, cash flow from operating activities is computed by using all cash receipts and cash payments during the year.

Cash Receipts: It encompasses all the cash receipts from sale of goods and on account receivable.

Cash Payments: It encompasses all the cash payments that are made to suppliers of goods and all expenses that are paid.

The below table shows the way of calculation of cash flows from operating activities:

Cash flows from operating activities (Direct method)

Add: Cash receipts.

Cash receipt from customer

Less: Cash payments:

To supplier

For operating expenses

Income tax expenses

Net cash provided from or used by operating activities

Cash payments for purchase represents the total amount of cash paid for the purchase as well as to the accounts payable.

Therefore, the amount of cash paid for merchandise is $1,025,800.

Working notes:

Calculate increase or decrease in merchandise inventories:

Increase or decrease inmerchandise inventories}=(Beginning balance - Ending balance)=($193,430−$178,020)=$15,410(Decrease)

Calculate increase or decrease in accounts payable:

Increase or decrease in accounts payable}=(Beginning balance - Ending balance)=($105,800−$96,140)=$9,660(Decrease)

b.

To determine

Determine the amount of cash paid for operating expenses.

b.

Expert Solution

Answer to Problem 21E

Determine the amount of cash paid for operating expenses.

Cash paid for operating expenses}=[Operating expenses other than depreciation (+Decrease in accrued expense payable OR − Increase in accrued expense tax payable)]=(Operating expenses other than depreciation + Decrease in iaccrued expense payable)=($179,400+$1,380)=$180,780

Therefore, the amount of cash paid for operating expenses is $180,780.

Explanation of Solution

Cash payments for accrued expense represent the total amount of cash paid for the operating expense as well as to the accrued expense payable.

Therefore, the amount of cash paid for operating expenses is $180,780.

Working note:

Calculate increase or decrease in operating expenses / accrued expense payable:

Increase or decrease in operating expenses/accrued expense payable}=(Beginning balance - Ending balance)=($14,030−$12,650)=$1,380(Decrease)

Answer 6

Chapter 16, Problem 21E

To determine

Determine the amount of cash paid for merchandise.

Expert Solution

Answer to Problem 21E

Determine the amount of cash paid for merchandise.

Cash paid for merchandise=[Cost of Goods Sold (+Decrease in Accounts Payable/Increase in Inventory OR − Increase in Accounts Payable /Decrease in Inventory)]=(Cost of goods sold + Decrease in Accounts Payable − Decrease in Inventory)=1,031,550+$9,660−$15,410=$1,025,800

Therefore, the amount of cash paid for merchandise is $1,025,800.

Explanation of Solution

Statement of cash flows: It is one of the financial statement that shows the cash and cash equivalents of a company for a particular period. It determines the net changes in cash through reporting the sources and uses of cash due to the operating, investing, and financing activities of a company.

Direct method: This method uses the basis of cash for preparing the cash flows statement.

Cash flows from operating activities: In this direct method, cash flow from operating activities is computed by using all cash receipts and cash payments during the year.

Cash Receipts: It encompasses all the cash receipts from sale of goods and on account receivable.

Cash Payments: It encompasses all the cash payments that are made to suppliers of goods and all expenses that are paid.

The below table shows the way of calculation of cash flows from operating activities:

Cash flows from operating activities (Direct method)

Add: Cash receipts.

Cash receipt from customer

Less: Cash payments:

To supplier

For operating expenses

Income tax expenses

Net cash provided from or used by operating activities

Cash payments for purchase represents the total amount of cash paid for the purchase as well as to the accounts payable.

Therefore, the amount of cash paid for merchandise is $1,025,800.

Working notes:

Calculate increase or decrease in merchandise inventories:

Increase or decrease inmerchandise inventories}=(Beginning balance - Ending balance)=($193,430−$178,020)=$15,410(Decrease)

Calculate increase or decrease in accounts payable:

Increase or decrease in accounts payable}=(Beginning balance - Ending balance)=($105,800−$96,140)=$9,660(Decrease)

Answer 7

Chapter 16, Problem 21E

To determine

Determine the amount of cash paid for merchandise.

Answer 8

Expert Solution

Answer to Problem 21E

Determine the amount of cash paid for merchandise.

Cash paid for merchandise=[Cost of Goods Sold (+Decrease in Accounts Payable/Increase in Inventory OR − Increase in Accounts Payable /Decrease in Inventory)]=(Cost of goods sold + Decrease in Accounts Payable − Decrease in Inventory)=1,031,550+$9,660−$15,410=$1,025,800

Therefore, the amount of cash paid for merchandise is $1,025,800.

Answer 9

Expert Solution

Answer 10

Expert Solution

Answer 11

Expert Solution

Answer 12

Explanation of Solution

Statement of cash flows: It is one of the financial statement that shows the cash and cash equivalents of a company for a particular period. It determines the net changes in cash through reporting the sources and uses of cash due to the operating, investing, and financing activities of a company.

Direct method: This method uses the basis of cash for preparing the cash flows statement.

Cash flows from operating activities: In this direct method, cash flow from operating activities is computed by using all cash receipts and cash payments during the year.

Cash Receipts: It encompasses all the cash receipts from sale of goods and on account receivable.

Cash Payments: It encompasses all the cash payments that are made to suppliers of goods and all expenses that are paid.

The below table shows the way of calculation of cash flows from operating activities:

Cash flows from operating activities (Direct method)

Add: Cash receipts.

Cash receipt from customer

Less: Cash payments:

To supplier

For operating expenses

Income tax expenses

Net cash provided from or used by operating activities

Cash payments for purchase represents the total amount of cash paid for the purchase as well as to the accounts payable.

Therefore, the amount of cash paid for merchandise is $1,025,800.

Working notes:

Calculate increase or decrease in merchandise inventories:

Increase or decrease inmerchandise inventories}=(Beginning balance - Ending balance)=($193,430−$178,020)=$15,410(Decrease)

Calculate increase or decrease in accounts payable:

Increase or decrease in accounts payable}=(Beginning balance - Ending balance)=($105,800−$96,140)=$9,660(Decrease)

Answer 13

b.

To determine

Determine the amount of cash paid for operating expenses.

b.

Expert Solution

Answer to Problem 21E

Determine the amount of cash paid for operating expenses.

Cash paid for operating expenses}=[Operating expenses other than depreciation (+Decrease in accrued expense payable OR − Increase in accrued expense tax payable)]=(Operating expenses other than depreciation + Decrease in iaccrued expense payable)=($179,400+$1,380)=$180,780

Therefore, the amount of cash paid for operating expenses is $180,780.

Explanation of Solution

Cash payments for accrued expense represent the total amount of cash paid for the operating expense as well as to the accrued expense payable.

Therefore, the amount of cash paid for operating expenses is $180,780.

Working note:

Calculate increase or decrease in operating expenses / accrued expense payable:

Increase or decrease in operating expenses/accrued expense payable}=(Beginning balance - Ending balance)=($14,030−$12,650)=$1,380(Decrease)

Answer 14

b.

To determine

Determine the amount of cash paid for operating expenses.

Answer 15

b.

Expert Solution

Answer to Problem 21E

Determine the amount of cash paid for operating expenses.

Cash paid for operating expenses}=[Operating expenses other than depreciation (+Decrease in accrued expense payable OR − Increase in accrued expense tax payable)]=(Operating expenses other than depreciation + Decrease in iaccrued expense payable)=($179,400+$1,380)=$180,780