Reference no: EM132492501

The following information relates to Brunswick Ltd.

(i) At the beginning of the accounting period the company has a wages payable liability of $300 and at the reporting date a wages payable of $720. During the year the wages expense shown in the income statement was $700.

(ii) At the beginning of the accounting period the company has property plant and equipment (PPE) with a carrying amount of $800. At the end of the accounting period, the carrying amount of the PPE is $2,400. During the year depreciation charged was $160, a revaluation surplus of $480 was recorded and PPE with a carrying amount of $120 was sold for $160.

(iii) At the beginning of the accounting period the company has retained earnings of $5,000 and at the end of the accounting period the balance of the retained earnings is $4,600. The reported profit for the year was $5,500.

(iv) Brunswick Ltd also provides you with the following information on its sale and collection of accounts receivable:

Sales for the year                                                $35,000

Discounts provided to customers for early payment   $900

Doubtful debts expense for the year                            $500

Opening balance of accounts receivable                     $8,200

Closing balance of accounts receivable                        $6,400

Opening balance of the allowance for doubtful debts         $720

Closing balance of the allowance for doubtful debts           $640

Required:

Question (i) Calculate the cash paid for wages

Question (ii) Calculate the cash paid to purchase new PPE

Question (iii) Calculate the dividend paid

Question (iv) Calculate cash collected from customers