Reference no: EM132515174

Question - Lewitas Ltd earned revenues of $35 million during 2018 and ended the year with income of $8 million. During 2018, Lewitas Ltd collected $33 million from customers and paid cash for all of its expenses plus an additional $1 million for accounts payable. Answer these questions about Lewitas' operating results, financial position, and cash flows during 2018.

1. How much were the company's total expenses? Show your work.

2. Identify all the items that Lewitas will report on its 2018 income statement. Show each amount.

3. Lewitas began 2018 with receivables of $4 million. All sales were on account. What was the company's receivables balance at the end of 2018? Identify the appropriate financial statement, and show how Lewitas will report ending receivables in the 2018 annual report

4. Lewitas began 2018 owing accounts payable of $9 million. How much in accounts payable did the company owe at the end of the year? Identify the appropriate financial statement, and show how Lewitas will report these accounts payable in its 2018 annual report.