The following selected account balances appeared on the financial statements of the Washington Company. Use these balances to answer the questions that follow. Accounts receivable, Jan. 1 $13,000 Accounts receivable, Dec. 31 9,000 Accounts payable, Jan. 1 4,000 Accounts payable, Dec. 31 7,000 Inventory, Jan. 1 10,000 Inventory, Dec. 31 15,000 Sales 56,000 Cost of goods sold 31,000 The Washington Company uses the direct method to calculate net cash flow from operating activities. Assume that all accounts payable are owed to merchandise suppliers. Cash collections from customers were

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Business

Lucille Rojas

27 April, 01:39

The following selected account balances appeared on the financial statements of the Washington Company. Use these balances to answer the questions that follow. Accounts receivable, Jan. 1 $13,000 Accounts receivable, Dec. 31 9,000 Accounts payable, Jan. 1 4,000 Accounts payable, Dec. 31 7,000 Inventory, Jan. 1 10,000 Inventory, Dec. 31 15,000 Sales 56,000 Cost of goods sold 31,000 The Washington Company uses the direct method to calculate net cash flow from operating activities. Assume that all accounts payable are owed to merchandise suppliers. Cash collections from customers were

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Natalee · Answer 1

The financial statements of the Washington Company is used to find out the cash collection from the customer

Cash Collections from customers = 13000 + 56000 - 9000

Cash Collections from customers = $60000

The financial statements of the Washington Company is used to find out the Purchase

Purchase = 15000 + 31000 - 10000

Purchase = $36000

The financial statements of the Washington Company is used to find out the Cash paid to suppliers

Cash paid to suppliers = 4000 + 36000 - 7000

Cash paid to suppliers = $33000