The Bears Corporation has provided you the following information:
• The accounts receivable balance increased $50,000.
• Net sales was $500,000.
• The gross profit was 40% of net sales.
• The inventory account increased $45,000.
• The accounts payable balance decreased $17,000.
• $7,500 of accounts receivable were written off.
• The bad debt expense was $10,000.
Required:
1.Determine the cash collected from customers.
2.Determine the cash paid to suppliers.

Question

Quizplus · Accepted Answer

The Answer of The Bears Corporation has provided you the following information:
• The accounts receivable balance increased $50,000.
• Net sales was $500,000.
• The gross profit was 40% of net sales.
• The inventory account increased $45,000.
• The accounts payable balance decreased $17,000.
• $7,500 of accounts receivable were written off.
• The bad debt expense was $10,000.
Required:
1.Determine the cash collected from customers.
2.Determine the cash paid to suppliers.

The Bears Corporation Has Provided You the Following Information