Chenowith Co. reports revenues of $198,840 and operating expenses of $111,870 in its first year of operations, 2012. Accounts receivable and accounts payable at year-end were $81,980 and $40,900, respectively. Assume that the accounts payable related to operating expenses. Ignore income taxes.
Using the direct method, compute net cash provided (used) by operating activities. (If an amount reduces the account balance then enter with negative sign.)
Situation B:
The income statement for Edgebrook Company shows cost of goods sold $305,500 and operating expenses (exclusive of depreciation) $230,300. The comparative balance sheet for the year shows that inventory increased $21,070, prepaid expenses decreased $7,650, accounts payable (related to merchandise) decreased $16,070, and accrued expenses payable increased $14,630.
Compute (a) cash payments to suppliers and (b) cash payments for operating expenses.
Image text transcribed for accessibility Chenowith Co. reports revenues of $198,840 and operating expenses of $111,870 in its first year of operations, 2012. Accounts receivable and accounts payable at year-end were $81,980 and $40,900, respectively. Assume that the accounts payable related to operating expenses. Ignore income taxes. Using the direct method, compute net cash provided (used) by operating activities.The income statement for Edgebrook Company shows cost of goods sold $305,500 and operating expenses (exclusive of depreciation) $230,300. The comparative balance sheet for the year shows that inventory increased $21,070, prepaid expenses decreased $7,650, accounts payable (related to merchandise) decreased $16,070, and accrued expenses payable increased $14,630. Compute (a) cash payments to suppliers and (b) cash payments for operating expenses.