Problem
Balance Sheet June 30th, Year 5
Assets Liabilities and Equity
Cash 10,000 Accounts Payable 19,000
Accounts receivables 34,000 Wages Payable 4,000
Inventory 60,000 Income Tax Payable 1,000
Prepaid Insurance 4,000 Notes Payables 80,000
Capital Assets 200,000 Common Shares 100,000
Accumulated depreciation (40,000) Retained Earnings 64,000
Total Assets 268,000 Total Liabilities and Equity 268,000
The following are all transactions that happened during Year 6:
Made all sales on account of $250,000
Collected accounts receivable of $245,000
Purchased merchandise on account of $134,000
Determined cost of goods sold was $133,500
Paid accounts payable (for merchandise purchased) of $143,000
Paid wages to employees of $61,300
Accrued wages expense (and wages payable) of $1,500 at June 30th, Year 6.
Paid insurance premium of $18,000 to extend coverage for three years.
Allocated $5,000 of prepaid insurance to insurance expense.
Recorded Year 6 total income tax expense (and income tax payable) of $13,000
Paid income taxes to government of $11,500 (this represents the final portion of Year 5 taxes and initial installments of Year 6 taxes).
Depreciation for the year $10,000
a) What is the amount of Cash received (paid) from employees?
b) What is the amount of cash generated (used) by Inventory in year 6?
c) What is the amount of cash generated (used) by operations in year 6?
d) What is amount of Net Income reported in year 6?
e) What is ending balance of Cash at the end of Year 6?
f) What is ending balance of Inventory at the end of Year 6?
g) What is ending balance of Retained Earnings at the end of Year 6?