Spirit Company, a merchandiser, recently completed the 2010 calendar year. For the year, (1) all sales are credit sales, (2) all credits to Accounts Receivable reflect cash receipts from customers, (3) all purchases of inventory are on credit, (4) all debits to Accounts Payable reflect cash payments for inventory, and (5) Other Expenses are paid in advance and are initially debited to Prepaid Expenses. The company's balance sheet and income statement follow:

Additional Information on Year 2010 Transactions

Determine the cash received by Spirit for the equipment sold in item C above.

Question

Spirit Company, a merchandiser, recently completed the 2010 calendar year. For the year, (1) all sales are credit sales, (2) all credits to Accounts Receivable reflect cash receipts from customers, (3) all purchases of inventory are on credit, (4) all debits to Accounts Payable reflect cash payments for inventory, and (5) Other Expenses are paid in advance and are initially debited to Prepaid Expenses. The company's balance sheet and income statement follow: 
 
 Additional Information on Year 2010 Transactions

Determine the cash received by Spirit for the equipment sold in item C above.

Quizplus · Accepted Answer

The Answer of Spirit Company, a merchandiser, recently completed the 2010 calendar year. For the year, (1) all sales are credit sales, (2) all credits to Accounts Receivable reflect cash receipts from customers, (3) all purchases of inventory are on credit, (4) all debits to Accounts Payable reflect cash payments for inventory, and (5) Other Expenses are paid in advance and are initially debited to Prepaid Expenses. The company's balance sheet and income statement follow: 
 
 Additional Information on Year 2010 Transactions

Determine the cash received by Spirit for the equipment sold in item C above.

Spirit Company, a Merchandiser, Recently Completed the 2010 Calendar Year