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Question
The following selected account balances are taken from a merchandising company's records:
| Dec. 31 2012 | Dec. 31 2013 | For the Year 2013 | |
| Merchandise inventory | $ 15,600 | $ 21,200 | |
| Accounts payable | 32,400 | 27,400 | |
| Salaries payable | 4,400 | 3,000 | |
| Accounts receivable | 42,000 | 36,000 | |
| Total assets | 234,000 | 286,000 | |
| Sales | $312,000 | ||
| Cost of goods sold | 165,600 | ||
| Salaries expense | 48,000 |
(a) Calculate the cash payments made during 2013 for merchandise. Assume all of the company's accounts payable balances are a result from merchandise purchases.
(b) Calculate the cash receipts from customer sales during 2013.
(c) Calculate the cash payments for salaries during 2013.
Answer
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