Computing cash flow items-direct method

Reference no: EM131820483

Question: Computing cash flow items-direct method Consider the following facts:

a. Beginning and ending Accounts Receivable are $25,000 and $27,000, respectively. Credit sales for the period total $68,000.

b. Cost of goods sold is $81,000.

c. Beginning Merchandise Inventory balance is $25,000, and ending Merchandise Inventory balance is $26,000.

d. Beginning and ending Accounts Payable are $13,000 and $10,000, respectively.

Requirements: 1. Compute cash collections from customers.

2. Compute cash payments for merchandise inventory.

Reference no: EM131820483

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