Ask Question
22 September, 12:51

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

+5
Answers (1)
  1. 22 September, 14:32
    0
    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
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “The following selected account balances appeared on the financial statements of the Washington Company. Use these balances to answer the ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers