Reference no: EM13670774

For each part below, first calculate the dollar amount of purchases and then using that result , calculate the dollar amount of cash paid to suppliers using the following data:

Beginning                              Ending                                    Beginning                              Ending                    Cost of goods

Accounts payable               Accounts Payable                         Inventory                               Inventory               Sold

$0                                           $600                                       $0                                     $1,200                   $2,000

$0                                           $600                                       $300                                  $1,500                   $3,000

$500                                       $300                                       $800                                   $500                      $5,000

Given the following balance sheets and income statement for Crestin International Inc:

a - Develop a cash flow statement

b - Explain why the cash balance increased by $350 when the company generated a net profit of $405.

Crestin international inc balance sheet

                (000's)

Cash                                        $200                                       Accounts payable                                             $200

Accounts receivable                    $800                                       Operating accruals                                           $300

Inventory                                  $250                                       Debt                                                              $750

Fixed Assets                              $1,000                                    Common Stock                                                 $400

(Accumulated Depr)                    $400                                       Retained earnings                                             $200

Total                                        $1,850                                    Total                                                              $1,850