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Cash flows to accrual. For each of the following items, calculate the amount of revenue or expense that should be recognized on the income statement for Pelkey Co. for the year ended December 31, 2013:
a. Cash collected from customers during the year amounted to $412,000, and accounts receivable increased by $25,000. How much were sales on account for the year ended December 31, 2013?b. Cash payments for income taxes during the year were $166,000, and income taxes payable increased by $14,000. How much was income tax expense?c. Cash paid to suppliers during the year amounted to $243,000, accounts payable decreased by $27,300, and inventories decreased by $16,000. How much was cost of goods sold?d. The net book value of buildings increased by $95,000. No buildings were sold, and a new building costing $170,000 was purchased during the year. How much was depreciation expense?
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Key figures for Polaris and Arctic Cat follow.
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