Question - The comparative balance sheet of HULT Company, for 2014 & 2013 appears below in condensed form:
|
2014
|
2013
|
|
Cash
|
$ 68,000
|
$ 42,500
|
|
Accounts receivable (net)
|
61,000
|
70,200
|
|
Inventories
|
121,000
|
205,000
|
|
Prepaid Rent
Equipment, net
|
2,500
359,500
|
4,000
246,000
|
|
$612,000
|
$567,700
|
|
|
|
|
Accounts payable
|
$ 54,750
|
$ 122,250
|
|
Dividends payable
|
5,000
|
0
|
|
Common stock
|
425,000
|
350,000
|
|
Retained earnings
|
127,250
|
95,450
|
|
$612,000
|
$567,700
|
Additional data for the current year are as follows:
- Sales of 2014 were $950,000
- Cost of goods sold $410,000
- Rent expense $32,000
- Net income, $71,800.
- Depreciation expense, $12,000
Required:
1) Determine the amount of cash would HULT collect from its customers during 2014.
2) Determine the amount of cash HULT paid for rent during 2014.
3) Determine the amount of cash HULT paid to suppliers during 2014.