Determination of Missing Amounts-Cash Flow from Operating Activities
Required:
The computation of cash provided by operating activities requires analysis of the noncash current asset and current liability accounts. Using T accounts, determine the missing amounts for each of the following independent cases:
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Case 1
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Accounts receivable, beginning of year
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$96,000
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Accounts receivable, end of year
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65,000
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Credit sales for the year
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107,000
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Cash sales for the year
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38,000
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Write-offs of uncollectible accounts
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22,000
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Total cash collections for the year (from cash sales and collections on account)
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$
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Case 2
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Inventory, beginning of year
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$30,000
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Inventory, end of year
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48,000
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Accounts payable, beginning of year
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23,000
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Accounts payable, end of year
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16,000
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Cost of goods sold
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158,000
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Cash payments for inventory (assume all purchases of inventory are on account)
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$
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Case 3
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Prepaid insurance, beginning of year
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$21,000
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Prepaid insurance, end of year
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26,000
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Insurance expense
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17,000
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Cash paid for new insurance policies
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$
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Case 4
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Income taxes payable, beginning of year
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$102,000
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Income taxes payable, end of year
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128,000
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Income tax expense
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64,000
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Cash payments for taxes
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$
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