contestada

The following information pertains to Peak Heights Company: Income Statement for Current Year Sales $ 93,000 Expenses Cost of goods sold $ 51,875 Depreciation expense 6,000 Salaries expense 12,000 69,875 Net income $ 23,125 Partial Balance Sheet Current year Prior year Accounts receivable $ 10,500 $ 12,000 Inventory 13,000 8,000 Salaries payable 2,250 800 Required: Present the operating activities section of the statement of cash flows for Peak Heights Company using the direct method. (List cash outflows as negative amounts.)

Respuesta :

Zviko

Answer:

                                     Peak Heights Company

                               Cashflow Statement (Extract)

Cashflow from Operating Activities

Cash Receipts from Customers                                                    $94500

Cash paid to Suppliers and Employees                                      ($25450)

Cash Generated from Operations                                                     $0

Net Cashflow from Operating Activities                                       $69050                      

Explanation:

Cash Receipts from Customers

Open a Trade and Other Receivables - T Account and the balancing figure is the cash receipts from customers

Opening Accounts Receivables $ 12000(debit)

Sales for the Year $ 93000

Closing Accounts Receivables$10500(credit)

Bank (Balancing Figure) $ 94500 (credit)

Therefore Cash Receipts from Customers is $94500

Cash paid to Suppliers and Employees

Sales                                                               $ 93,000

Less Cost of goods sold                                $ 51,875

Gross Profit                                                     $ 41,125

Less Net income                                             $ 23,125

Expenses                                                         $18,000

Calculation for Cash Expenses (Suppliers and Employees)

Expenses                                                                           $18,000

Add Depreciation expense                                               $6,000

Add Increase in Accounts payable(2250-800)                $1,450

Cash paid to Suppliers and Employees                          $25450

Answer:  

                                   Peak Heights Company

                                Cashflow Statement (Extract)

                              Cashflow from Operating Activities

Cash Receipts from Customers                                                    $94500

Cash paid to Suppliers and Employees                                      ($25450)

Cash Generated from Operations                                                     $0

Net Cashflow from Operating Activities                                       $69050                      

 

  • Cash Receipts from Customer

Formula:

Cash Receipts from customer =

Open a Trade and Other Receivables - Account and the balancing figure is the cash receipts from customers

  • Opening Accounts Receivables= $ 12000 Dr.
  • Sales for the Year= $ 93000
  • Closing Accounts Receivables=$10500 Cr.
  • Bank (Balancing Figure) =$ 94500 Cr.

Thus, Cash Receipts from Customers is $94500

  • Cash paid to Suppliers and Employees

  • Sales                                                              $ 93,000
  • Less Cost of goods sold                                $ 51,875
  • Gross Profit                                                     $ 41,125
  • Less Net income                                             $ 23,125
  • Expenses                                                         $18,000

 

  • Calculation for Cash Expenses (Suppliers and Employees)

Expenses                                                                          $18,000

Add Depreciation expense                                               $6,000

Add Increase in Accounts payable(2250-800)               $1,450  

Cash paid to Suppliers and Employees                          $25450

Know more:

https://brainly.com/question/24188844?referrer=searchResults

Otras preguntas