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2 April, 04:04

he income statement for Electronic Wonders reports net sales of $91,758 million and cost of goods sold of $69,278 million. An examination of balance sheet amounts indicates accounts receivable increased $1,733 million, inventory increased $883 million, and accounts payable to suppliers decreased $1,967 million. Required:Using the direct method, calculate (1) cash received from customers and (2) cash paid to suppliers.

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  1. 2 April, 06:02
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    Cash received from customers is $90,025 million

    Cash paid to suppliers is $72,128 million

    Explanation:

    Cash received from customers is the net sales of $91,758 million minus the increase in accounts receivable since that is the portion of revenue yet to be received.

    cash received from customers=$91,758 million-$1,733 million=$90,025 million

    cash paid to suppliers is the cost of goods sold of $69,278 million plus the increase in inventory as well as the increase in accounts payable

    cash paid to suppliers=$69,278 million+$883 million+$1,967 million=$72,128 million
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