Assume a company had sales of $372,000 (all on account) and net income of $60,000. It provided the following excerpts from its balance sheet: This Year Last Year Current assets: Accounts receivable $ 40,000 $ 46,000 Inventory $ 53,000 $ 50,000 Prepaid expenses $ 13,000 $ 11,000 Current liabilities: Accounts payable $ 38,000 $ 44,000 Accrued liabilities $ 18,000 $
Assume a company had sales of $372,000 (all on account) and net income of $60,000. It provided the following excerpts from its balance sheet: This Year Last Year Current assets: Accounts receivable $ 40,000 $ 46,000 Inventory $ 53,000 $ 50,000 Prepaid expenses $ 13,000 $ 11,000 Current liabilities: Accounts payable $ 38,000 $ 44,000 Accrued liabilities $ 18,000 $
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter15: Financial Statement Analysis
Section: Chapter Questions
Problem 50E: Juroe Company provided the following income statement for last year: Juroes balance sheet as of...
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Assume a company had sales of $372,000 (all on account) and net income of $60,000. It provided the following excerpts from its balance sheet:
| This Year | Last Year | |
|---|---|---|
| Current assets: | ||
| Accounts receivable | $ 40,000 | $ 46,000 |
| Inventory | $ 53,000 | $ 50,000 |
| Prepaid expenses | $ 13,000 | $ 11,000 |
| Current liabilities: | ||
| Accounts payable | $ 38,000 | $ 44,000 |
| Accrued liabilities | $ 18,000 | $ 15,000 |
| Income taxes payable | $ 13,000 | $ 10,000 |
If the credits to the company’s accumulated depreciation account were $21,000, then based solely on the information provided, the company’s cash collections from customers would be:
Multiple Choice
-
$375,000.
-
$381,000.
-
$366,000.
-
$378,000.
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