Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. the following information was reported by three co

The following information was reported by three companies. When completing the requirements, assume that any...

80.2K

Verified Solution

Question

Accounting

The following information was reported by three companies. When completing the requirements, assume that any and all purchases on account are for inventory. Aztec Corporation Bikes Unlimited Campus Cycles Cost of goods sold $ 175,000 $ 175,000 $ 350,000 Inventory purchases from suppliers made using cash 200,000 0 200,000 Inventory purchases from suppliers made on account 0 200,000 200,000 Cash payments to suppliers on account 0 160,000 160,000 Beginning inventory 100,000 100,000 200,000 Ending inventory 125,000 125,000 250,000 Beginning accounts payable 0 80,000 80,000 Ending accounts payable 0 120,000 120,000 Required: What amount did each company deduct on the income statement related to inventory? What total amount did each company pay out in cash during the period related to inventory purchased with cash and on account? By what amount do your answers in requirements 1 and 2 differ for each company? By what amount did each companys inventory increase (decrease)? By what amount did each companys accounts payable increase (decrease)? Using the indirect method of presentation, what amount(s) must each company add (deduct) from net income to convert from accrual to cash basis?

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Zin AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

the data is as follows: expected long-run growth rate: 5%, cost of equity is 10%, forecast...

Finance
Q

Discuss an example of a time (or situation) when directness was appropriate in your response giving...

General Management
Q

Which one of the following is correct regarding the blood-testis barrier?It is formed by Sertoli...

Biology
Q

A collection of genes that encode molecules of genetically diverse glyco found on mammalian cells...

Biology
Q

Find the area of the rhombus Note The dimensions shown are for half the diagonal...

Geometry
Q

submitting this assignment Let s put your knowledge of linear programming to the test Recall...

Basic Math
Q

Simplify the sum State any restrictions on the variable y 1 y 2 y 9...

Algebra
Q

Goodheart Pharmaceutical Company is a maker of drugs for high blood pressure and uses a...

Accounting
Q

* MUCON 4 of 10 15 complete Use the quotient rule to find the derivative...

Accounting
Q

After several years of profitable operations, Javell, the sole shareholder of JBD Incorporated, a C...

Accounting
Q

Which matters will NOT be included in the audit strategy? Risk assessment and...

Accounting
Q

Direct Materials Variances I-Time, Inc., produces electronic timepieces. The company uses mini-LCD displays for its...

Accounting