For each part below, first calculate the dollar amount of purchases and then using that result , calculate the dollar amount of cash paid to suppliers using the following data:
Beginning Ending Beginning Ending Cost of goods
Accounts payable Accounts Payable Inventory Inventory Sold
$0 $600 $0 $1,200 $2,000
$0 $600 $300 $1,500 $3,000
$500 $300 $800 $500 $5,000
Given the following balance sheets and income statement for Crestin International Inc:
a - Develop a cash flow statement
b - Explain why the cash balance increased by $350 when the company generated a net profit of $405.
Crestin international inc balance sheet
(000's)
Cash $200 Accounts payable $200
Accounts receivable $800 Operating accruals $300
Inventory $250 Debt $750
Fixed Assets $1,000 Common Stock $400
(Accumulated Depr) $400 Retained earnings $200
Total $1,850 Total $1,850