Question

For each of the following three separate cases, use the information provided about the calendar-year 2018 operations of Sahim Company to compute the required cash flow information.

Case X: Compute cash received from customers:
Sales	\(515,000
Accounts receivable, December 31, 2017	27,200
Accounts receivable, December 31, 2018	33,600
Case Y: Compute cash paid for rent:
Rent expense	\)139,800
Rent payable, December 31, 2017	7,800
Rent payable, December 31, 2018	6,200
Case Z: Compute cash paid for inventory:
Cost of goods sold	$525,000
Inventory, December 31, 2017	158,600
Accounts payable, December 31, 2018	66,700
Inventory, December 31, 2018	130,400
Accounts payable, December 31, 2018	82,000

Short answer

1. Case X- Cash received from the customer is $508,600
2. Case Y- Cash paid for rent is $141,400
3. Case Z- Cash paid to the merchandise is $481,500

Step-by-step solution

Meaning of Accounts Receivable

Accounts receivable refers to the amount of the money that will be received in the future from the customers against the credit sale of goods and services.

(Case X) Calculation of cash flow

Description	Amount ($)
Sales	$515,000
Add: Account receivable December 31, 2017	27,200
Less: Accounts receivable, December 31, 2018	(33,600)
Cash received from the customer	$508,600

(Case Y) Calculation of cash flow

Description	Amount ($)
Rent expense	$139,800
Add: Rent payable, December 31, 2017	7,800
Less: Rent payable, December 31, 2018	(6,200)
Cash paid for rent	$141,400

(Case Z) Calculation of cash flow

Description	Amount ($)
Cost of goods sold	$525,000
Less: Decrease in inventory $(130,400-158,600)$	(28,200)
Purchases	496,800
Less: Increase in accounts payable$\left(\$82,000-\$66,700\right)$	($15,300)
Cash paid to merchandise	$481,500