The Nyameye Manufacturing Company increased its merchandise inventory by GH¢17,000 over the year. The company also granted its customers more liberal credit terms which increased the accounts receivable by GH¢37,500. Sales were GH¢975,000, and the accounts payable decreased by GH¢27,500. The gross profit on sales is 45%. Marketing and administrative expenses were GH¢145,000; this included depreciation expense of GH¢4,000. What were the cash disbursements for the year? A. GH¢721,750. B. GH¢706,500. C. GH¢689,500. D. GH¢599,750.
The Nyameye Manufacturing Company increased its merchandise inventory by GH¢17,000 over the year. The company also granted its customers more liberal credit terms which increased the accounts receivable by GH¢37,500. Sales were GH¢975,000, and the accounts payable decreased by GH¢27,500. The gross profit on sales is 45%. Marketing and administrative expenses were GH¢145,000; this included depreciation expense of GH¢4,000. What were the cash disbursements for the year? A. GH¢721,750. B. GH¢706,500. C. GH¢689,500. D. GH¢599,750.
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter5: The Income Statement And The Statement Of Cash Flows
Section: Chapter Questions
Problem 3RE: Shaquille Corporation began the current year with inventory of 50,000. During the year, its...
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The Nyameye Manufacturing Company increased its merchandise inventory by GH¢17,000 over the year. The company also granted its customers more liberal credit terms which increased the
- A. GH¢721,750.
- B. GH¢706,500.
- C. GH¢689,500.
- D. GH¢599,750.
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