The following selected account balances appeared on the financial statements of
ID: 2371226 • Letter: T
Question
The following selected account balances appeared on the financial statements of the Washington Company:
Accounts Receivable, Jan. 1 $13,000
Accounts Receivable, Dec. 31 9,000
Accounts Payable, Jan 1 4,000
Accounts Payable Dec. 31 7,000
Merchandise Inventory, Jan 1 10,000
Merchandise Inventory, Dec. 31 15,000
Sales 56,000
Cost of Goods Sold 31,000
Question:
Cash Collections from customers are?
Cash paid to suppliers is?
Explanation / Answer
Cash Collections from customers = 13000 + 56000-9000 = $60000
Purchase = 15000 + 31000 -10000 = $36000
Cash paid to suppliers = 4000 + 36000-7000 =$33000