hapter 11—The Statement of Cash Flows
Mary Kay Cosmetics
Selected data and additional information from the company’s records are presented below:
|
Balance Sheet Data |
2014 |
2013 |
|
Cash |
$235,000 |
246,000 |
|
Accounts receivable |
$120,000 |
$150,000 |
|
Inventories |
56,000 |
50,000 |
|
Accounts payable |
38,000 |
70,000 |
|
Salaries payable |
10,000 |
5,000 |
|
Equipment |
110,000 |
70,000 |
|
Accumulated depreciation |
28,000 |
32,000 |
|
Bonds payable |
100,000 |
200,000 |
|
Common stock |
300,000 |
200,000 |
|
Retained earnings |
76,000 |
40,000 |
|
Income Statement Data |
|
2014 |
|
Net sales |
$920,000 |
|
|
Cost of goods sold |
700,000 |
|
|
Operating expenses (excluding depreciation expense) |
160,000 |
|
|
Net income (Includes depreciation expense and gain) |
56,000 |
|
|
Gain on sale of equipment |
4,000 |
Additional information:
|
1. |
Equipment with a cost of $30,000 and a book value of $18,000 was sold for $22,000 during 2014. |
|
2. |
Common stock was issued to retire bonds payable during 2014. |
|
3. |
The only items affecting retained earnings in 2014 were net income and dividends declared and paid. |
2. Refer to Mary Kay Cosmetics. What amount of cash was collected from customers during 2014?
3. Refer to Mary Kay Cosmetics. What is the amount paid to suppliers for purchases of merchandise during 2014?
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Rating:
/5
Solution: hapter 11—The Statement of Cash Flows