Solved

The Barden Company Provides the Following Information from Its Year

Question 96

Multiple Choice

The Barden Company provides the following information from its Year 3 and Year 4 balance sheets:
 Year 3 Year 4 Accounts receivable $115,000$97,500 Inventory 120,000130,000 Prepaid insurance 7,5001,500 Prepaid rent 40,00015,000 Accounts payable 55,00065,000\begin{array}{lrr}&\text { Year } 3&\text { Year } 4\\\text { Accounts receivable } & \$ 115,000 & \$ 97,500 \\\text { Inventory } & 120,000 & 130,000 \\\text { Prepaid insurance } & 7,500 & 1,500 \\\text { Prepaid rent } & 40,000 & 15,000 \\\text { Accounts payable } & 55,000 & 65,000\end{array}
The following information is available from the Year 4 income statement:
 Sales $425,000 Cost of goods sold 225,000 Insurance expense 12,000 Rent expense 25,000\begin{array} {| l r | } \hline \text { Sales } & \$ 425,000 \\\text { Cost of goods sold } & 225,000 \\\text { Insurance expense } & 12,000 \\\text { Rent expense } & 25,000\\\hline\end{array}
-How much cash did Barden pay for rent during Year 4?


A) $0
B) $15,000
C) $25,000
D) $40,000

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents