Solutions 14-2 & 26-6, 10

Solutions 14-2 & 26-6, 10 - $156,000 Beginning cash...

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Chapter 14 Question 2 Input Area: Common stock par value $2.00 Shares outstanding 500 Capital surplus $250,000 Retained earnings $750,000 New shares issued 5,000 Issue price $30 Output Area: a. Common stock $1,000 Total equity $1,001,000 b. Capital surplus on sale $140,000 Comon stock $11,000 Capital surplus $390,000 Retained earnings $750,000 Total equity $1,151,000
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Chapter 26 Question 6 Input Area: Item Beginning Ending Inventory $8,413 $10,158 A/R $5,108 $5,439 A/P $6,927 $7,625 Net sales $67,312 COGS $52,827 Output Area: Inventory turnover 5.6892 Inventory Period 64.1567 Receivable turnover 12.7642 Receivable period 28.5956 Operating cycle 92.75 Payables turnover 7.2604 Payables period 50.2724 Cash cycle 42.48
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Chapter 26 Question 10 Input Area: Uncollected credit sales 5% Collected in the month of the sale 35% Collected in the following month 60% Previous month credit sales $210,000 Previous month credit purchases
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Unformatted text preview: $156,000 Beginning cash $280,000 April May June Credit sales $380,000 $396,000 $438,000 Credit purchases 147,000 175,500 200,500 Cash disbursements Wages, taxes, and expenses 39,750 48,210 50,300 Interest 11,400 11,400 11,400 Equipment purchases 83,000 91,000 - Output Area: Sales collections = .35 times current month sales + .60 times previous month sales. April May June Beginning cash sales $280,000 $248,850 $317,840 Cash receipts Cash collections from credit sales 259,000 ### 366,600 390,900 Total cash available 539,000 ### 615,450 708,740 Cash disbursements Purchases 156,000 147,000 175,500 Wages, taxes, and expenses 39,750 48,210 50,300 Interest 11,400 11,400 11,400 Equipment purchases 83,000 91,000 - Total cash disbursements 290,150 297,610 237,200 Ending cash balance $248,850 ### $317,840 $471,540...
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Solutions 14-2 & 26-6, 10 - $156,000 Beginning cash...

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