El Lobos Corp uses the direct method to prepare its
El Lobos Corp. uses the direct method to prepare its statement of cash flows and follows IFRS. El Lobos’ trial balances at December 31, 2011, and 2010, were as follows:
Additional information:
1. El Lobos purchased $5,000 of equipment during 2011.
2. El Lobos allocated one third of its depreciation expense to selling expenses and the remainder to general and administrative expenses.
3. Bad debt expense for 2011 was $5,000 and writeoffs of uncollectible accounts totalled $4,800.
4. El Lobos has adopted the policy of classifying the payments of interest as financing activities on the statement of cash flows.
Determine what amounts El Lobos should report in its statement of cash flows for the year ended December 31, 2011, for the following:
(a) Cash collected from customers
(b) Cash paid to suppliers of goods and services (excluding interest and income taxes)
(c) Cash paid for interest
(d) Cash paid for income taxes
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