The ABC Corporation comparative balance sheets for Year 1 and Year 2 with selected data are as follows:
**All sales are on account
** All purchases of inventory are on account
** Only purchases of inventory run through accounts payable
** Any purchases of equipment were made in cash
** Any changes to long-term liabilities or stock accounts involved cash
(See Attached Comparative Balance Sheets)
Based on the Balance Sheets:
1. How much cash did ABC collect from customers during Year 2?
2. How much did ABC pay in dividends to shareholders in Year 2?
3. How much cash did ABC pay to suppliers for inventory during Year 2?
4. How much did ABC pay in income taxes to the government in Year 2?
5. What are ABC's cash flows from operating activities for Year 2?
6. What are ABC's cash flows from investing activities for Year 2?
7. What are ABC's cash flows from financing activities for Year 2?
Note: I have edited the attached balance sheets to show detail of assets.
The solutions answers the question(s) below.