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Additional information: ROSO COMPANY INCOME STATEMENT Instructions FOR THE YEAR ENDED DECEMBER 31, 2021 Sales $800,000 Cost of goods sold: ***** Beginning inventory. . $50,000 Purchases .400,000 Ending inventory........ 20.000 Cost of goods sold Gross profit. Operating expenses: Selling expenses.......... 50,000 Administrative expenses ..70,000 Net income 1. Accounts receivable increased $30,000 during the year. 2. Prepaid Rent on sale store increased $70,000 during the year. 3. Accounts payable to suppliers of merchandise decreased $275,000 during the year 4. Utility payable on administration office decreased $20,000 during the year. 5. Administrative expenses include depreciation expense of $30,000. a. Compute the cash collection from sale. b. Compute the cash payment for selling expense. inistrati 430.000 370,000 expense 120,000 ..$250,000

Additional information: ROSO COMPANY INCOME STATEMENT Instructions FOR THE YEAR ENDED DECEMBER 31, 2021 Sales $800,000 Cost of goods sold: ***** Beginning inventory. . $50,000 Purchases .400,000 Ending inventory........ 20.000 Cost of goods sold Gross profit. Operating expenses: Selling expenses.......... 50,000 Administrative expenses ..70,000 Net income 1. Accounts receivable increased $30,000 during the year. 2. Prepaid Rent on sale store increased $70,000 during the year. 3. Accounts payable to suppliers of merchandise decreased $275,000 during the year 4. Utility payable on administration office decreased $20,000 during the year. 5. Administrative expenses include depreciation expense of $30,000. a. Compute the cash collection from sale. b. Compute the cash payment for selling expense. inistrati 430.000 370,000 expense 120,000 ..$250,000

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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II. The income statement of Roso Company is shown below. Additional information: Instructions ROSO COMPANY INCOME STATEMENT FOR THE YEAR ENDED DECEMBER 31, 2021 Sales.... ..$800,000 Cost of goods sold: ***** Beginning inventory. . $50,000 Purchases ..400,000 Ending inventory. 20.000 Cost of goods sold Gross profit...... Operating expenses: Selling expenses....... . 50,000 Administrative expenses ..70,000 Net income.. 430.000 370,000 1. Accounts receivable increased $30,000 during the year. 2. Prepaid Rent on sale store increased $70,000 during the year. 3. Accounts payable to suppliers of merchandise decreased $275,000 during the year. 4. Utility payable on administration office decreased $20,000 during the year. 5. Administrative expenses include depreciation expense of $30,000. a. Compute the cash collection from sale. b. Compute the cash payment for selling expense. c. Compute the cash payment for administration expense. 120.000 ..$250,000
Transcribed Image Text:II. The income statement of Roso Company is shown below. Additional information: Instructions ROSO COMPANY INCOME STATEMENT FOR THE YEAR ENDED DECEMBER 31, 2021 Sales.... ..$800,000 Cost of goods sold: ***** Beginning inventory. . $50,000 Purchases ..400,000 Ending inventory. 20.000 Cost of goods sold Gross profit...... Operating expenses: Selling expenses....... . 50,000 Administrative expenses ..70,000 Net income.. 430.000 370,000 1. Accounts receivable increased $30,000 during the year. 2. Prepaid Rent on sale store increased $70,000 during the year. 3. Accounts payable to suppliers of merchandise decreased $275,000 during the year. 4. Utility payable on administration office decreased $20,000 during the year. 5. Administrative expenses include depreciation expense of $30,000. a. Compute the cash collection from sale. b. Compute the cash payment for selling expense. c. Compute the cash payment for administration expense. 120.000 ..$250,000
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