QUESTION 2 (12 marks: 14 minutes) The selected data below were taken from the comparative...

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Accounting

QUESTION 2 (12 marks: 14 minutes)
The selected data below were taken from the comparative trialbalances of Airbus Ltd for the year ended 30 JuneX5:
X5 X4 R R Trade receivable 720 000 800 000 Inventories 280 000 200000 Property, plant and equipment 1 200 000 1 000 000 Accumulateddepreciation 210 000 200 000 Stationery on hand 12 000 10 000 Tradepayable (for inventory) 420 000 400 000 Other accrued liabilities (for other operating expenses) 88 000 84 000 Retained income(profit) 210 000 150 000

Airbus Ltd Statement of Comprehensive Income for the year ended 31December X5 R R Revenue Sales 920 000 Profit on disposal ofproperty, plant and equipment 18 400 938 400 Expenses Cost of goodssold 690 000 Stationery expense 9 000 Other operating expenses(including depreciation of R10 000 and impairment expenses of R3000) 174 000 873 000 Profit for the year 65 400

You are required to:
Determine the following:
1. Cash received from customers during the year.

35
2. Cash paid for stationery during the year. 3. Cash paid forinventory purchases during the year. 4. Cash paid for otheroperating expenses during the year.

Answer & Explanation Solved by verified expert

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Solution 1:

Computation of cash received from customers
Particulars	Amount
Beginning accounts receivables	$800,000.00
Add: Revenues	$920,000.00
Less: Ending accounts receivables	$720,000.00


Cash received from customers	$1,000,000.00

Solution 2:

Computation of cash paid for Stationery
Particulars	Amount
Stationery Expense	$9,000.00
Add: Ending Stationery	$12,000.00
Less: Beginning Stationery	$10,000.00

Cash paid for stationery purchased	$11,000.00

Solution 3:

Computation of cash paid for inventory purchase
Particulars	Amount
Cost of Goods Sold	$690,000.00
Add: Ending inventory	$280,000.00
Less: Beginning inventory	$200,000.00

Purchases made during the year	$770,000.00
Add: Opening accounts payable	$400,000.00
Less: Ending accounts payable	$420,000.00

Cash paid for inventory purchases	$750,000.00

Solution 4:

Computation of cash paid for Operating expenses
Particulars	Amount
Other Operating expenses	$174,000.00
Less: Depreciation Expense	$10,000.00
Less: Impairment Expense	$3,000.00
Add: Beginning accrued liabilities	$84,000.00
Less: ending accrued liabilities	$88,000.00

Cash paid for other operating expenses	$157,000.00

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In: AccountingQUESTION 2 (12 marks: 14 minutes) The selected data below were taken from the comparative trial...QUESTION 2 (12 marks: 14 minutes) The selected data below were taken from the comparative trialbalances of Airbus Ltd for the year ended 30 JuneX5: X5 X4 R R Trade receivable 720 000 800 000 Inventories 280 000 200000 Property, plant and equipment 1 200 000 1 000 000 Accumulateddepreciation 210 000 200 000 Stationery on hand 12 000 10 000 Tradepayable (for inventory) 420 000 400 000 Other accrued liabilities (for other operating expenses) 88 000 84 000 Retained income(profit) 210 000 150 000Airbus Ltd Statement of Comprehensive Income for the year ended 31December X5 R R Revenue Sales 920 000 Profit on disposal ofproperty, plant and equipment 18 400 938 400 Expenses Cost of goodssold 690 000 Stationery expense 9 000 Other operating expenses(including depreciation of R10 000 and impairment expenses of R3000) 174 000 873 000 Profit for the year 65 400You are required to: Determine the following: 1. Cash received from customers during the year. 352. Cash paid for stationery during the year. 3. Cash paid forinventory purchases during the year. 4. Cash paid for otheroperating expenses during the year.