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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