Cash Flow

Question 1

Cash collected from customers

Answer 1

Sales
Add beginning accounts receivable
Less ending accounts receivable

= Cash receipts from customers

Question 2

Cash paid to suppliers for purchases

Answer 2

Cost of sales
Less beginning inventory
Add ending inventory
Add beginning accounts payable
Less ending accounts payable

= Cash paid to suppliers for purchase

Question 3

Expenses payable

Answer 3

End operating expenses payable
Less beginning operating expenses

= Increase in expense payable

Operating expense for the period
Less increase in expense payable

= Cash paid for operating expenses

Question 4

Dividends paid

Answer 4

Beginning retained earnings
Add profit during the period
Less end retained earnings

= dividends paid

Question 5

Cash paid for insurance expenses

Answer 5

Beginning prepaid insurance
Less End prepaid insurance
= decrease in prepaid insurance

Insurance expense for the period
Less decrease in prepaid insurance

= Cash paid for insurance

Question 6

Cash paid for wages expense

Answer 6

End wages payable
Less beginning wages payable
= Increase in wages payable

Wages expense for the period
Less increase in wages payable

= cash paid for wages

Question 7

Purchase of equipment

Answer 7

Carrying amount of equipment at end
Add depreciation
Less carrying amount of depreciation at start