Question: Los Lobos Corp uses the direct method to prepare its

Los Lobos Corp. uses the direct method to prepare its statement of cash flows. Los Lobos’s trial balances at December 31, 2008 and 2007, are as follows.


Additional information:
1. Los Lobos purchased $5,000 in equipment during 2008.
2. Los Lobos allocated one-third of its depreciation expense to selling expenses and the remainder to general and administrative expenses.
3. Bad debt expense for 2008 was $5,000, and write-offs of uncollectible accounts totaled $4,800.
Instructions
Determine what amounts Los Lobos should report in its statement of cash flows for the year ended December 31, 2008, for the following items.
1. Cash collected from customers.
2. Cash paid to suppliers.
3. Cash paid for interest.
4. Cash paid for income taxes
5. Cash paid for sellingexpenses.
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  • CreatedMay 15, 2012
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