Reference no: EM132473585

Problem - The following income statement and balance sheet information relate to Madison Industries for the year 2018 (the 2017 balance sheet is the "beginning" balance sheet):

2018 Income Statement:

Sales Revenue $1,500,000

Cost of goods sold 720,000

Gross profit 780,000

Operating expenses (including $30,000 depreciation) 210,000

Pretax income 570,000

Income tax expense (rate is 30%) 171,000

Net Income $399,000

Balance Sheet: 2018 2017

Accounts receivable $70,000 $65,000

Inventory 155,000 142,000

Prepaid expenses 10,000 11,000

Accounts payable 78,000 72,000

Income taxes payable 5,000 4,500

Unearned revenue 10,000 14,000

Required - Compute:

1. Cash collected from customers.

2. Cash paid to suppliers.