Computing cash paid for rent


Response to the following problem:

For each of the following three separate cases, use the information provided about the calendar-year 2012 operations of Sahim Company to compute the required cash flow information.

Case A: Compute cash received from customers:

Sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $510,000

Accounts receivable, December 31, 2011 . . . . . . . . . . 25,200

Accounts receivable, December 31, 2012 . . . . . . . . . . 34,800

Case B: Compute cash paid for rent:

Rent expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $140,800

Rent payable, December 31, 2011 . . . . . . . . . . . . . . . . . 8,800

Rent payable, December 31, 2012 . . . . . . . . . . . . . . . . . 7,200

Case C: Compute cash paid for merchandise:

Cost of goods sold . . . . . . . . . . . . . . . . . . . . . . . . . . . . $528,000

Merchandise inventory, December 31, 2011 . . . . . . . . . 159,600

Accounts payable, December 31, 2011 . . . . . . . . . . . . . 67,800

Merchandise inventory, December 31, 2012 . . . . . . . . . 131,400

Accounts payable, December 31, 2012 . . . . . . . . . . . . . 84,000

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Accounting Basics: Computing cash paid for rent
Reference No:- TGS02946011

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