Use the information below for ABC Co. to answer thefollowing questions.
BalanceSheet December31
2005 2004
Assets
Cash $ 20,000 $ 10,000
Accountsreceivable 160,000 110,000
Inventories80,000 50,000
PrepaidRent 15,00010,000
Investments 100,000 75,000
Plantassets 210,000 250,000
Accumulated depreciation(65,000) (60,000)
Total$520,000 $445,000
Liabilities and Stockholders' Equity
Accountspayable $ 50,000 $ 40,000
Interest payable20,000 5,000
Income taxpayable 5,000 10,000
Notepayable 130,000 140,000
Commonstock 155,000 100,000
Retained earnings160,000 150,000
Total$520,000 $445,000
Income Statement
For the Year Ended December 31, 2005
Sales $800,000
Cost of goodssold 480,000
GrossProfit 320,000
Operating expenses (including Depreciation Expense) 120,000
Interest expense 20,000
Income tax expense 25,000
Total165,000
Income before Gains andLosses 155,000
Gain on sale of plantassets 5,000
Net income $ 160,000
Additional information:
Accounts payable pertain to the purchase of inventory.
Plant assets were sold for $40,000. The cost of the plant assetswas $40,000.
All dividends are cash.
For the year 2005:
1. Cash received/collected from customers is:
2. Purchases for the year is:
3. Cash paid to suppliers is:
4. Depreciation expense is:
5. Cash paid for operating expenses is:
6, Cash paid for interest is:
Use the information below for ABC Co. to answer thefollowing questions.
BalanceSheet December31
2005 2004
Assets
Cash $ 20,000 $ 10,000
Accountsreceivable 160,000 110,000
Inventories80,000 50,000
PrepaidRent 15,00010,000
Investments 100,000 75,000
Plantassets 210,000 250,000
Accumulated depreciation(65,000) (60,000)
Total$520,000 $445,000
Liabilities and Stockholders' Equity
Accountspayable $ 50,000 $ 40,000
Interest payable20,000 5,000
Income taxpayable 5,000 10,000
Notepayable 130,000 140,000
Commonstock 155,000 100,000
Retained earnings160,000 150,000
Total$520,000 $445,000
Income Statement
For the Year Ended December 31, 2005
Sales $800,000
Cost of goodssold 480,000
GrossProfit 320,000
Operating expenses (including Depreciation Expense) 120,000
Interest expense 20,000
Income tax expense 25,000
Total165,000
Income before Gains andLosses 155,000
Gain on sale of plantassets 5,000
Net income $ 160,000
Additional information:
Accounts payable pertain to the purchase of inventory.
Plant assets were sold for $40,000. The cost of the plant assetswas $40,000.
All dividends are cash.
For the year 2005:
1. Cash received/collected from customers is:
2. Purchases for the year is:
3. Cash paid to suppliers is:
4. Depreciation expense is:
5. Cash paid for operating expenses is:
6, Cash paid for interest is:
