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  • Carrico Advertising Inc Performs Advertising Services For Several Fortune 500

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    Carrico Advertising Inc. provides advertising services for several large companies. In 2019, they performed $695,100 in advertising services and collected $708,700 in cash from customers. Their operating expenses were $437,600 and interest expenses were $133,400. They were asked to calculate their 2019 income before taxes, ending accounts receivable and payable balances, and supplies used.

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    Carrico Advertising Inc Performs Advertising Services for Several Fortune 500

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    Carrico Advertising Inc. provides advertising services for several large companies. In 2019, they performed $695,100 in advertising services and collected $708,700 in cash from customers. Their operating expenses were $437,600 and interest expenses were $133,400. They were asked to calculate their 2019 income before taxes, ending accounts receivable and payable balances, and supplies used.

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    © All Rights Reserved
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    25 views1 page

    Carrico Advertising Inc Performs Advertising Services For Several Fortune 500

    Uploaded by

    Taimur Technologist
    Carrico Advertising Inc. provides advertising services for several large companies. In 2019, they performed $695,100 in advertising services and collected $708,700 in cash from customers. Their operating expenses were $437,600 and interest expenses were $133,400. They were asked to calculate their 2019 income before taxes, ending accounts receivable and payable balances, and supplies used.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Flag for inappropriate content
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    Carrico Advertising Inc performs advertising services for

    several Fortune 500 #2292


    Carrico Advertising Inc performs advertising services for several Fortune 500

    Carrico Advertising Inc. performs advertising services for several Fortune 500 companies. The
    following information describes Carrico's activities during 2019.

    a. At the beginning of 2019, customers owed Carrico $45,800 for advertising services performed
    during 2018. During 2019, Carrico performed an additional $695,100 of advertising services on
    account. Carrico collected $708,700 cash from customers during 2019.

    b. At the beginning of 2019, Carrico had $13,350 of supplies on hand for which it owed
    suppliers $8,150. During 2019, Carrico purchased an additional $14,600 of supplies on account.
    Carrico also paid $19,300 cash owed to suppliers for goods previously purchased on credit.
    Carrico had $2,230 of supplies on hand at the end of 2019.

    c. Carrico's 2019 operating and interest expenses were $437,600 and $133,400, respectively.

    Required:

    1. Calculate Carrico's 2019 income before taxes.

    2. Calculate the ending balance of accounts receivable, the supplies used, and the ending
    balance of accounts payable.

    3. Explain the underlying principles behind why the three accounts computed in Requirement 2
    exist?

    Carrico Advertising Inc performs advertising services for several Fortune 500

    ANSWER
    http://paperinstant.com/downloads/carrico-advertising-inc-performs-advertising-services-for-
    several-fortune-500/

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