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Calculate and identify cash flows. Sales for 2010 were $50,000 cost of goods sold was $35,000. If accounts receivable increased by $2,000; inventory decreased by $1,300; accounts payable decreased by $2,000; and other accrued liabilities decreased by $1,000, how much cash was paid to vendors and suppliers during the year? How would the cash from this transaction be classified on the statement of cash flows?
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The balance in Accounts Receivable was $200,000 at 1/1 and $240,000 at 12/31. At 12/31/10, Smithson estimates that 5% of accounts receivable will prove to be uncollectible. What is Bad Debt Expense for 2010?
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