Mary Kay Cosmetics
Selected data and additional information from the companys records are presented below:
Balance Sheet Data
2014
2013
Cash
$235,000
246,000
Accounts receivable
$120,000
$150,000
Inventories
56,000
50,000
Accounts payable
38,000
70,000
Salaries payable
10,000
5,000
Equipment
110,000
70,000
Accumulated depreciation
28,000
32,000
Bonds payable
100,000
200,000
Common stock
300,000
200,000
Retained earnings
76,000
40,000
Income Statement Data
2014
Net sales
$920,000
Cost of goods sold
700,000
Operating expenses (excluding depreciation expense)
160,000
Net income (Includes depreciation expense and gain)
56,000
Gain on sale of equipment
4,000
Additional information:
1.
Equipment with a cost of $30,000 and a book value of $18,000 was sold for $22,000 during 2014.
2.
Common stock was issued to retire bonds payable during 2014.
3.
The only items affecting retained earnings in 2014 were net income and dividends declared and paid.
2. Refer to Mary Kay Cosmetics. What amount of cash was collected from customers during 2014?
3. Refer to Mary Kay Cosmetics. What is the amount paid to suppliers for purchases of merchandise during 2014?