Reference no: EM132984034

Sporty Co, a retailer of sports goods, is preparing its statement of cash flows for the year ended 30 June 2020. The following information is provided:

Sales for the year 500,000
Cost of goods sold for the year 89,000
Doubtful debts expense for the year 7,000
Depreciation expense for the year 80,000
Gain on sale of property, plant and equipment 50,000
Discounts provided during the year to the customers for early payment 15,000
Discounts received for early payments to suppliers 3,000
Opening balance of accounts receivable 100,000
Closing balance of accounts receivable 76,000
Opening balance of the allowance for doubtful debts 8,000
Closing balance of the allowance for doubtful debts 5,000
Stock write-offs owing to fire 6,000
Opening balance of accounts payable 50,000
Closing balance of accounts payable 44,000
Opening balance of inventory 20,000
Purchase for the year (on credit terms) 90,000
Closing balance of inventory 15,000
Opening balance of property, plant and equipment 700,000
Closing balance of property, plant and equipment 850,000
Opening balance of accumulated depreciation 400,000
Closing balance of accumulated depreciation 390,000
Carrying amount of property, plant and equipment that has been disposed of 110,000

Required:

Problem (a) Calculate how much cash has been received from customers for the year ending on 30 June 2020 and show your workings.

Problem (b) Assuming that accounts payables are related only to the purchase of inventory, calculate how much cash has been paid to suppliers for the year ending on 30 June 2020 and show your workings.

Problem (c) Calculate how much cash has been received from the disposal of property, plant and equipment and how much cash has been used to acquire property, plant and equipment throughout the year ending on 30 June 2020 and show your workings.