Question Details

Redman's statement of financial position 



a1
The general ledger of Lopez Company provides the following information:
	End of Year	Beginning of Year
	Accounts Receivable	$  55,000	$  94,000
	Inventory	310,000	210,000
	Accounts Payable	40,000	65,000
The company's net sales for the year was $2,200,000 and cost of goods sold amounted to $1,500,000.
Instructions
Compute the following:
(a)	Cash receipts from customers.
(b)	Cash payments to suppliers.

2
The income statement of Redman Inc. for the year ended December 31, 2011, reported the following condensed information:
	Service revenue	$600,000
	Operating expenses	  360,000
	Income from operations	240,000
	Income tax expense	    60,000
	Net income	$180,000

Redman's statement of financial position contained the following comparative data at December 31:
		   2011		   2010	
	Accounts receivable	$60,000	$40,000
	Accounts payable	40,000	50,000
	Income taxes payable	6,000	3,000

Redman has no depreciable assets. Accounts payable pertains to operating expenses.

Instructions
Prepare the operating activities section of the statement of cash flows using the direct method.





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