© Corporate Finance Institute

Johannes Period 4 Exercise

Period 4
Cash purchases 200
Cash sales 400
Sales on credit 410
Purchases on credit 380
Receipts from receivables 430
Payments to payables 360
Cash expenses 100
Depreciation 55
There was closing inventory of 35.
Record the following transactions in the gray boxes below:

Income statement Cash Flow

Revenue (400+410) 810 Cash from sales (400+430) 830

Opening inventory - Cash on purchases (200+36 (560)
Purchases (200+380) 580 Cash expenses (100)
Closing inventory (35)
Cost of sales (545)
Expenses (100)
Depreciation (55)

Net income 110 Change in cash 170

Reconciliation

Net income 110

- Increase in A/R 20
+ Increase in A/P 20
- Increase in inventory (35)

+ Depreciation 55

Change in cash 170