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Question
Use the information provided below to calculate the cash paid for interest for the period.
Interest payable, beginning-year... $4,200
Interest expense. 26,700
Interest payable, year-end. 3,000
Cash paid for interest $
Answer
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Use the information provided to calculate the cash paid for insurance for the period
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Insurance expense.. 16,800
Prepaid insurance, year-end... 3,400
Cash paid for insurance.. $
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For each of the following separate cases, use the information provided to calculate the missing cash inflow or cash outflow using the direct method.(a) Accounts receivable balances: Beginning of year ……………………… $ 60,000 End of year …………………………….. 63,000 Sales revenue(all on credit) …………….. 395,000 Cash received from customers $_____(b) Accounts payable balances: Beginning of year ………………………. $ 42,000 End of year……………………………… 31,000 Merchandise inventory balances: Beginning of year ……………………… 50,000 End of year …………………………….. 52,500 Cost of goods sold……………………….. 250,000 Cash paid for merchandise inventory……. $______(c) Interest payable balances: Beginning of year ……………………... $7,500 Endof year ……………………………. 8,200 Interest expense ………………………… 31,000 Cash paid for interest …………………… $______
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Explain the use of a spreadsheet in the preparation of the statement of cash flows.