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The Metro Company

The document contains information about inventory, accounts payable, and cost of goods sold for multiple companies. It asks the reader to calculate cash paid to suppliers using this financial data and t-account approaches.

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Tk Kim
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56 views1 page

The Metro Company

The document contains information about inventory, accounts payable, and cost of goods sold for multiple companies. It asks the reader to calculate cash paid to suppliers using this financial data and t-account approaches.

Uploaded by

Tk Kim
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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1. The Metro company’s cost of goods sold for the current year is 145,000.

The beginning and ending balances of its merchandise inventory and


accounts payable are given below:
Merchandise inventory at the beginning of the year:  40,000
Merchandise inventory at the end of the year:  32,000
Accounts payable at the beginning of the year:  29,000
Accounts payable at the end of the year:  15,000
Required: Compute the total cash paid to suppliers of inventory during the
period using above information.

2. Consider the following information of a merchandising company for the


year 2016:
Inventory on January 1, 2016: 40,000
Inventory on December 31, 2016: 75,000
Accounts payable on January 1, 2016: 22,000
Accounts payable on December 31, 2016: 35,000
Cost of goods sold for the year 2016: 350,000
Required: Calculate total cash paid to suppliers during year 2016 by
preparing t-accounts.

3. A company provides the following data for the current period:


Inventory at the start of the period : 40,000
Inventory at the end of the period: 32,000
Accounts payable at the start of the period: 29,000
Accounts payable at the end of the period:  15,000
The cost of goods sold (COGS) for the current 145,000
period is
Required: Compute the amount of cash paid for the purchase of
merchandise inventory during the period using t-accounts approach.

4. The Alpha company prepares its statement of cash flows using direct
method. It requests you to calculate cash received from customers during
the year 2016. For this purpose, the following information has been
extracted from the trial balance of the company. The company sells goods
on credit. For the year 2016, bad debts expense were 7,500 and accounts
amounting to 6,400 were written-off.
Accounts receivable on December 31, 2015:  62,000
Accounts receivable on December 31, 2016:  70,000
Allowance for doubtful accounts on December 31, 2015: 2,100
Allowance for doubtful accounts on December 31, 2016: 3,200
Sales for the year 2015:  155,300

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