Answer:
Cash Collections from customers = $60,000
Cash paid to suppliers = $33,000
Explanation:
Given:
Accounts Receivable, Jan 1 = $13,000
Accounts Receivable, Dec 31 = $9,000
Accounts Payable, Jan 1 = $4,000
Accounts Payable Dec. 31 = $7,000
Merchandise Inventory, Jan 1 = $10,000
Merchandise Inventory, Dec. 31 = $15,000
Sales = $56,000
Cost of Goods Sold = $31,000
Now,
Cash Collections from customers
= Accounts Receivable, Jan 1 + Sales - Accounts Receivable, Dec. 31
= $13,000 + $56,000 - $9,000
= $60,000
also,
Purchase
= Merchandise Inventory, Dec. 31 + Cost of Goods Sold - Merchandise Inventory, Jan 1
= $15,000 + $31,000 - $10,000
= $36,000
and,
Cash paid to suppliers
= Accounts Payable, Jan 1 + Purchase - Accounts Payable Dec. 31
= $4,000 + $36,000 - $7,000
= $33,000
