homework solution

homework solution - E4-5.Determining collections on...

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: E4-5.Determining collections on account(AICPA adapted)Cash receipts from sales include cash sales plus collections on account computed as follows:Cash sales$ 200,000Beginning accounts receivable400,000Credit sales3,000,000Less: Ending accounts receivable(485,000)Total Cash receipts from sales$3,115,000Alternative Solution: T-account analysis of accounts receivableAccounts ReceivableBeginning balance$ 400,000XCollections on accountSales on account3,000,000Ending balance $ 485,000$485,000 = $400,000 + $3,000,000 -XX = $2,915,000Total cash receipts from sales:Cash sales$ 200,000Collections on accounts receivable2,915,000Total cash collected on sales$3,115,000E4-6.Determining cash from operations(AICPA adapted)Cash flows from operations:Cash received from customers$870,000Rent received10,000Taxes paid(110,000)Cash paid to employees and suppliers(510,000)Cash flows from operations$260,000Notice that cash dividends paid arises from the issuance of stock, a financing activity, and thus is not included in cash flows from operations.E4-7.Determining cash payments to suppliersCost of goods sold$ 318,450Add: Increase in inventory6,200Less: Increase in accounts payable(6,800)Cash paid to suppliers$ 317,850E4-8.Determining cash disbursements(AICPA adapted)To answer this question, one needs to first determine the accrual basis expenses and then (1) subtract from this figure expenses not paid in cash; and (2) add amounts paid out in cash not recorded as accrual expenses....
View Full Document

This note was uploaded on 09/30/2011 for the course ACCT 303 taught by Professor Staff during the Spring '11 term at S.F. State.

Page1 / 6

homework solution - E4-5.Determining collections on...

This preview shows document pages 1 - 3. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online