Use the following information for Practices 21 1 through 21 3.
The company provides the following information.
|
|
December 31 |
January 1 |
|
|
Accounts Payable |
$58,200 |
$61,500 |
|
|
Inventory |
39,400 |
37,300 |
|
|
Accounts Receivable |
87,000 |
89,100 |
|
(a) All purchases of inventory were on account.
(b) Sales for the year were $947,900.
(c) Cost of goods sold for the year was $404,600.
Practices 21 1
Cash Collected from Customers
Compute how much cash was collected from customers during the year.
Practices 21 3
Cash Paid for Inventory
Using your answer to Practice 21–2, compute how much cash was paid for inventory during the year.
Practice 21–2
Amount of Inventory Purchases
Compute how much inventory was purchased during the year.