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7 March, 16:22

Sustainability and computing cash flows P5 Case A: Compute interest received from customers Case B: Compute cash paid for wages Interest revenue $ 4,000 Wages expense $ 9,200 Interest receivable, December 31, 2018 640 Wages payable, December 31, 2018 2,300 Interest receivable, December 31, 2019 1,300 Wages payable, December 31, 2019 1,400 For each of the above two separate cases, use the information provided about the calendar-year 2019 operations of BioClean Company to compute the required cash flow information.

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  1. 7 March, 16:31
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    Cash flow financing activities:

    Interest received 3,340

    Cash flow operating Activities

    Wages paid (10,100)

    Explanation:

    To obtain the actual amount paid we do a relationship between the income statement and the balance sheet.

    the income statement will tell us about the total concept for interest or wages while the balance sheet will determinate the amount actually collected or paid:

    Interest:

    beginning balance + interest revenue = total interest the firm can collect

    640 + 4000 = 4,640

    The ending balance is the amount it didin't manage to collect therefomre no don involve cash:

    4,640 - 1,300 = 3,340

    Wages:

    beginning balance + wages expense = total wages to pay

    2,300 + 9,200 = 11,500

    Then, we subtract from this figure th unpaid amount which is the ending balance

    11,500 - 1,400 = 10,100
  2. 7 March, 17:24
    0
    Interest received from customers

    Interest receivable as at 31 Dec 2018 $640

    Interest revenue 4,000

    Interest receivable as at 31 Dec 2019 (1,300)

    3,340

    Computation of cash for Wages

    Wages Payable as at 31 Dec 2018 $2,300

    Wages expenses 9,200

    wages payable as at 31 Dec 2019 (1,400)

    10,100
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