The Following Balance Sheets Are Provided for Socrates Foods:
A

The following balance sheets are provided for Socrates Foods:
a. Compute the following:
(1) Cash received from customers during the year $__________
(2) Cash payments for merchandise during the year $__________
(3) Wages paid to employees during the year $__________
(4) In Socrates Foods' statement of cash flows, what amount would be reported as the net change in cash and cash equivalents? $__________ (increase/decrease)
b. Socrates Foods recorded the sale of equipment as follows:
How would this transaction be reported in Socrates Foods' statement of cash flows? (Assume the direct method is being used.)
$\begin{array}{lcc}&\text { End of } & \text { Beginning } \\&\text { Year }&\text {of Year }\\ \text { Cash and cash equivalents } & \$ 170,000 & \$ 120,000 \\ \text { Accounts receivable.}& 80,000 & 65,000 \\ \text {Inventory} & 140,000 & 130,000 \\\text {Plant and equipment (net)} & 130,000 & 80,000 \\ \text { Total assets } & \$ 520,000 & \$ 39 \\\text {Accounts payable (for merchandise).}&\$ 65,000 & \$ 35,000 \\\text {Wages payable}&120,000 & 110,000 \\\text {Long-term liabilities}&95,000 & 70,000 \\\text {Common stock}&100,000 & 100,000 \\\text {Retained earnings.}&140,000 & 80,000 \\ \$ 520,000 & \$ 395,000 \\\text {Total liabilities and owners' equity}&\end{array}$

$\text { Selected information from Socrates Foods' current year income statement: }$

$\begin{array}{lrr} \text { Sales } &&\$1,650,000\\ \text {Cost of goods sold. } &&840,000\\ \text {Wages expense. }& &260,000\end{array}$
$\begin{array}{lcc}\text { Cash } & 25,000 \\\text { Accumulated Depreciation: Equipment } & 20,000 \\\text { Loss on Disposal of Equipment } & 15,000\\\text { Equipment. }&&60,000\end{array}$