The following data relate to Swift Company for the year ended December 31, 2012. Swift Company uses the accrual basis. Sales on credit $250,000 Cost of inventory sold on credit 170,000 Collections from customers 220,000 Purchase of inventory on credit 150,000 Payment for purchases 140,000 Selling expenses (accrual basis) 40,000 Payment for selling expenses 45,000 Which of the following amounts represents income for Swift Company for the year ended December 31, 2012?
The following data relate to Swift Company for the year ended December 31, 2012. Swift Company uses the accrual basis. Sales on credit $250,000 Cost of inventory sold on credit 170,000 Collections from customers 220,000 Purchase of inventory on credit 150,000 Payment for purchases 140,000 Selling expenses (accrual basis) 40,000 Payment for selling expenses 45,000 Which of the following amounts represents income for Swift Company for the year ended December 31, 2012?
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Selected balance sheet information for the WolfCompany at November 30, and December 31, 2013, is presented below.The company uses the perpetual inventory system and all sales tocustomers are made on credit.
| Nov. 30 | Dec. 31 | ||||||||||||
| Dr. | Cr. | Dr. | Cr. | ||||||||||
| Accounts receivable | 9,500 | 2,500 | |||||||||||
| Prepaid insurance | 4,500 | 7,000 | |||||||||||
| Inventory | 6,500 | 5,500 | |||||||||||
| Accounts payable | 11,500 | 14,500 | |||||||||||
| Wages payable | 4,500 | 2,500 | |||||||||||
| The following cash flowinformation also is available: |
| a. | Cashcollected from credit customers, $75,000. |
| b. | Cashpaid for insurance, $4,500. |
| c. | Cash paid to suppliers of inventory, $55,000(the entire accounts payable amounts relate to inventorypurchases). |
| d. | Cashpaid to employees for wages, $9,500. |
| Determine the following for the month of December: | |
| Sales Revenue ? Cost of goods sold ? Insurnace expenses ? Wage expenses ? |
Exercise 23-3
The income statement of Pharoah Company is shownbelow.
PHAROAH COMPANY | ||||
| Sales revenue | $7,430,000 | |||
| Cost of goods sold | ||||
| Beginning inventory | $2,090,000 | |||
| Purchases | 4,770,000 | |||
| Goods available for sale | 6,860,000 | |||
| Ending inventory | 1,440,000 | |||
| Cost of goods sold | 5,420,000 | |||
| Gross profit | 2,010,000 | |||
| Operating expenses | ||||
| Selling expenses | 440,000 | |||
| Administrative expenses | 690,000 | 1,130,000 | ||
| Net income | $880,000 | |||
Additional information:
| 1. | Accounts receivable decreased $350,000 during the year. | |
| 2. | Prepaid expenses increased $150,000 during the year. | |
| 3. | Accounts payable to suppliers of merchandise decreased $260,000during the year. | |
| 4. | Accrued expenses payable decreased $130,000 during theyear. | |
| 5. | Administrative expenses include depreciation expense of$60,000. |
Prepare the operating activities section of the statement of cashflows for the year ended December 31, 2017, for Pharoah Company,using the indirect method. (Show amounts that decreasecash flow with either a - sign e.g. -15,000 or in parenthesis e.g.(15,000).)
