157. Balances of the current asset and current liability accounts at the end and beginning of the year are as follows:
End Beginning
Cash$ 62,000$73,000
Accounts receivable (net)75,00060,000
Inventories54,00047,000
Accounts payable
(merchandise creditors)43,00037,000
Salaries payable2,8003,800
Sales (on account)210,000
Cost of merchandise sold70,000
Operating expenses other than depreciation67,000
158. The comparative balance sheet of Colson Company, for 2011 and the preceding year ended December 31, 2010 appears below in condensed form:
Year Year
2011 2010
Cash$ 45,000$ 53,500
Accounts receivable (net)51,30058,000
Inventories147,200135,000
Investments060,000
Equipment493,000375,000
Accumulated depreciation-equipment(113,700)(128,000)
$622,800$553,500
Accounts payable$ 61,500$ 42,600
Bonds payable, due 20140100,000
Common stock, $10 par250,000200,000
Paid-in capital in excess of par--
common stock75,00050,000
Retained earnings236,300160,900
$622,800$553,500
The income statement for the current year is as follows:
Sales$623,000
Cost of merchandise sold348,500
Gross profit$274,500
Operating expenses:
Depreciation expense$24,700
Other operating expenses75,300 100,000
Income from operations$174,500
Other income:
Gain on sale of investment$ 5,000
Other expense:
Interest expense12,000 (7,000)
Income before income tax$167,500
Income tax64,100
Net income$103,400
Additional data for the current year are as follows:
159. The cash flows from operating activities are reported by the direct method on the statement of cash flows. Determine the following:
(a)If sales for the current year were $475,000 and accounts receivable increased by $39,000 during the year, what was the amount of cash received from customers?
(b)If income tax for the current year was $39,000 and income tax payable decreased by $11,000 during the year, what was the amount of cash payments for income tax?
160. Selected data for the current year ended December 31 are as follows:
BalanceBalance
December 31 January 1
Accrued expenses (operating expenses)$29,500$ 22,000
Accounts payable (merchandise creditors)90,000135,000
Inventories42,50068,000
Prepaid expenses23,00020,000
During the current year, the cost of merchandise sold was $620,000 and the operating expenses other than depreciation were $142,000. The direct method is used for presenting the cash flows from operating activities on the statement of cash flows.
Determine the amount reported on the statement of cash flows for (a) cash payments for merchandise and (b) cash payments for operating expenses.