Costa SA uses the direct method to prepare its statement of cash flows. Costa’s trial balances at December 31, 2022 and 2021, are as follows.

Additional information:

1. Costa purchased R$5,000 in equipment during 2022.

2. Costa allocated one-third of its depreciation expense to selling expenses and the remainder to general and administrative expenses.

3. Bad debt expense for 2022 was R$5,000, and write-offs of uncollectible accounts totaled R$4,800.

4. Interest expense includes R$500 of discount amortization.

Instructions

Determine what amounts Costa should report in its statement of cash flows for the year ended December 31, 2022, for the following items.

a. Cash collected from customers.

b. Cash paid to suppliers.

c. Cash paid for interest.

d. Cash paid for income taxes.

e. Cash paid for selling expenses.

Transcribed Image Text:

December 31 2022 2021 Debits Cash R$ 35,000 R$ 32,000 Accounts receivable 33,000 30,000 Inventory 31,000 47,000 Property, plant, and equipment 100,000 95,000 Cost of goods sold 250,000 38o,000 Selling expenses General and administrative expenses 141,500 172,000 137,000 151,300 Interest expense 4,300 2,600 Income tax expense 20,400 61,200 R$752,200 R$971,100 Credits Allowance for doubtful accounts R$ 1,300 R$ 1,100 Accumulated depreciation 16,500 13,500 Accounts payable Income taxes payable 25,000 17,000 21,000 29,100 Deferred income taxes 5:300 4,600 8% callable bonds payable Share capital-ordinary Share premium-ordinary 40,500 15,000 50,000 40,000 9,100 7,500 Retained earnings 44,700 64,600 Sales revenue 538,800 778,700 R$752,200 R$971,100