For each of the following separate cases, use the information provided to calculate the missing cash inflow or cash outflow using the direct method.
(a)

\begin{array}{|l|c|}\hline\text { Accounts receivable balances: }\\\hline \text { Beginning of year } & \$ 60,000 \\\hline \text { End of year } & 57,000 \\\hline \text { Sales revenue (all on credit) } & 375,000 \\\hline \text { Cash received from } & \$ \underline{\quad\quad}\\\hline\end{array}

(b)

\begin{array}{|l|r|}\hline \text { Accounts payable balances: } & \\\hline \text { Beginning of year } & \$ 42,000 \\\hline \text { End of year} & 45, \\\hline \text { Merchandise inventory balances: } & \\\hline \text { Beginning of year } & 50,000 \\\hline \text { End of year } & 47,500 \\\hline \text { Cost of goods sold } & 250,000 \\\hline\text { Cash paid for merchandise inventory }& \$ \underline{\quad\quad}\\\hline\end{array}

\begin{array} { l | l | r } \hline & & \\\hline \text { (c) } & \text { Interest payable balances: } & \\\hline & \text { Beginging of year } & \$ 7 , 5 0 0 \\\hline & \text { End of year } &9 , 2 0 0 \\\hline & \text { Interest expense } & 3 5 , 0 0 0\\\hline & \text { Cash paid for interest } & \$ \underline{\quad\quad}\\\hline\end{array}

A Decrease in the Inventory Account During the Year Should

Multiple Choice

Correct Answer:VerifiedUnlock this answer nowGet Access to more Verified Answers free of chargeAccess For Free

Correct Answer:
Verified
Unlock this answer now
Get Access to more Verified Answers free of charge