QUESTION 2 (12 marks: 14 minutes) The selected data below were taken from the co
ID: 2338577 • Letter: Q
Question
QUESTION 2 (12 marks: 14 minutes)
The selected data below were taken from the comparative trial balances of Airbus Ltd for the year ended 30 June X5:
X5 X4 R R Trade receivable 720 000 800 000 Inventories 280 000 200 000 Property, plant and equipment 1 200 000 1 000 000 Accumulated depreciation 210 000 200 000 Stationery on hand 12 000 10 000 Trade payable (for inventory) 420 000 400 000 Other accrued liabilities ( for other operating expenses) 88 000 84 000 Retained income (profit) 210 000 150 000
Airbus Ltd Statement of Comprehensive Income for the year ended 31 December X5 R R Revenue Sales 920 000 Profit on disposal of property, plant and equipment 18 400 938 400 Expenses Cost of goods sold 690 000 Stationery expense 9 000 Other operating expenses (including depreciation of R10 000 and impairment expenses of R3 000) 174 000 873 000 Profit for the year 65 400
You are required to:
Determine the following:
1. Cash received from customers during the year.
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2. Cash paid for stationery during the year. 3. Cash paid for inventory purchases during the year. 4. Cash paid for other operating expenses during the year.
Explanation / Answer
Solution 1:
Solution 2:
Solution 3:
Solution 4:
Computation of cash received from customers Particulars Amount Beginning accounts receivables $800,000.00 Add: Revenues $920,000.00 Less: Ending accounts receivables $720,000.00 Cash received from customers $1,000,000.00