Purpose: (L. O. 6) This exercise will test your ability to convert accrual basis information to cash basis information.
The Tom Fuller Corporation reported the following on its income statement for 2014:
The comparative balance sheets reported the following selected information:
All of the operating expenses reflected in the “other operating expenses” category were paid in cash during 2014. Accounts payable relate to purchases of merchandise inventory.
Compute the following amounts for 2014:
(a) Cash collections from customers.
(b) Cash payments for merchandise.
(c) Cash payments to employees.
(d) Cash payments for insurance.
(e) Cash payments for income taxes.
(f) Net cash provided by operating activities.