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    Cash vs Accrual Analysis

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    I need some help in this case study analysis:
    The following information is provided for Kelly Plumbing Supply.
    Cash received from customers during December 2011 $387,000
    Cash paid to suppliers for inventory during December 2011 131,000

    Cash received from customers includes November accounts receivables of $139,000. Sales totaling $141,000 were made on account during December and are expected to be collected in January 2012. Cash d to suppliers in December included payments of $19,000 for inventory purchased and used in November. All inventory purchased in December and $39,000 of inventory purchased in November was used in December.

    a. What is gross profit for the month of December under accrual accounts? (show calculations)

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    https://brainmass.com/business/business-philosophy-and-ethics/cash-vs-accrual-analysis-575217

    Solution Preview

    The attached MS Excel spreadsheet contains detailed instructions for completion of the cash vs accrual analysis for the Kelly Plumbing Supply Exercise.

    Cash vs Accrual Analysis

    The following information is provided for Kelly Plumbing Supply:
    Cash received from customers during December 2011 $387,000
    Cash paid to suppliers for inventory during December 2011 131,000

    Cash received from customers includes November accounts receivables of $139,000.
    Sales totaling $141,000 were made on account during December and are ...

    Solution Summary

    The solution contains detailed instructions for completion of the cash vs accrual analysis for the Kelly Plumbing Supply's Exercise within an Excel Spreadsheet.

    $2.19