Use the information below for ABC Co. to answer thefollowing questions (#15 – 26).Balance...Use...

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Accounting

Use the information below for ABC Co. to answer thefollowing questions (#15 – 26).
BalanceSheet                                      December31
                                                                                                                  2005                   2004
Assets
Cash                                                                                                         $  20,000            $  10,000
Accountsreceivable                                                                                    160,000              110,000
Inventories                                                                                                   80,000                50,000
PrepaidRent                                                                                                 15,000                10,000
Investments                                                                                                100,000                75,000
Plantassets                                                                                                 210,000              250,000
Accumulateddepreciation                                                                           (65,000)              (60,000)
         Total                                                                                                $520,000            $445,000
Liabilities and Stockholders' Equity
Accountspayable                                                                                      $  50,000            $  40,000
Interestpayable                                                                                             20,000                  5,000
Income taxpayable                                                                                         5,000                10,000
Notepayable                                                                                               130,000              140,000
Commonstock                                                                                            155,000              100,000
Retainedearnings                                                                                        160,000              150,000
         Total                                                                                                $520,000            $445,000
Income Statement
For the Year Ended December 31, 2005
Sales                                                                                                                                  $800,000
Cost of goodssold                                                                                                                 480,000
GrossProfit                                                                                                                             320,000
Operating expenses (including DepreciationExpense)                                  120,000
Interestexpense                                                                                           20,000
Income taxexpense                                                                                      25,000
         Total                                                                                                                           165,000
Income before Gains andLosses                                                                                            155,000
Gain on sale of plantassets                                                                                                        5,000
Netincome                                                                                                                       $  160,000
Additional information:
Accounts payable pertain to the purchase of inventory.
Plant assets were sold for $40,000. The cost of the plant assetswas $40,000.
All dividends are cash.
For the year 2005:
Cash received/collected from customers is:
Purchases for the year is:
Cash paid to suppliers is:
Depreciation expense is:

Answer & Explanation Solved by verified expert

3.7 Ratings (509 Votes)

Answer is as follows 1 Cash receivedcollected from customer 750000 refer note 1 2 Purchases for the year is 510000 refer note 2 3 Cash Paid to suppliers 500000 refer note 3 4 Depreciation for See Answer

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In: AccountingUse the information below for ABC Co. to answer thefollowing questions (#15 – 26).Balance...Use the information below for ABC Co. to answer thefollowing questions (#15 – 26).BalanceSheet December31 2005 2004 AssetsCash $ 20,000 $ 10,000Accountsreceivable 160,000 110,000Inventories 80,000 50,000PrepaidRent 15,000 10,000Investments 100,000 75,000Plantassets 210,000 250,000Accumulateddepreciation (65,000) (60,000) Total $520,000 $445,000Liabilities and Stockholders' EquityAccountspayable $ 50,000 $ 40,000Interestpayable 20,000 5,000Income taxpayable 5,000 10,000Notepayable 130,000 140,000Commonstock 155,000 100,000Retainedearnings 160,000 150,000 Total $520,000 $445,000Income StatementFor the Year Ended December 31, 2005Sales $800,000Cost of goodssold 480,000GrossProfit 320,000 Operating expenses (including DepreciationExpense) 120,000Interestexpense 20,000Income taxexpense 25,000 Total 165,000Income before Gains andLosses 155,000Gain on sale of plantassets 5,000 Netincome $ 160,000Additional information:Accounts payable pertain to the purchase of inventory.Plant assets were sold for $40,000. The cost of the plant assetswas $40,000.All dividends are cash.For the year 2005:Cash received/collected from customers is:Purchases for the year is:Cash paid to suppliers is:Depreciation expense is: