Reference no: EM132546904

Question 1 - Grouper Co. reports revenues of $199,000 and operating expenses of $109,000 in its first year of operations, 2017. Accounts receivable and accounts payable at year-end were $70,400 and $29,000, respectively. Assume that the accounts payable related to operating expenses. (Ignore income taxes.)

Using the direct method, compute net cash provided (used) by operating activities.

Question 2 - The income statement for Monty Traveler Company shows cost of goods sold $311,100 and operating expenses (exclusive of depreciation) $229,000. The comparative balance sheet for the year shows that inventory increased $26,100, prepaid expenses decreased $7,900, accounts payable (related to merchandise) decreased $16,900, and accrued expenses payable increased $11,000.

Compute (a) cash payments to suppliers and (b) cash payments for operating expenses.