Adjusted trial balances for Garboz Company, an industrial recycler, at December $31$ of the current and prior year follow.

Debits, December $31$ Current Year Prior Year

Cash $$14,000$ $$12,800$

Accounts receivable $13,20012,000$

Inventory $12,40018,800$

Property, plant, and equipment $40,00038,000$

Discount on bonds payable $1,8002,000$

Cost of goods sold $100,000152,000$

Selling expenses $56,60068,800$

General and administrative expenses $54,80060,520$

Interest expense $1,7201,040$

Income tax expense $8,16024,480$

Total debits $$302,680$ $$390,440$

Credits, December $31$ Current Year Prior Year

Allowance for doubtful accounts $ $520$ $ $440$

Accumulated depreciation $6,6006,000$

Trade accounts payable $10,0007,000$

Income taxes payable $8,40010,840$

Deferred income tax liability $2,1201,840$

Callable bonds payable, $8\%18,0008,000$

Common stock $20,00016,000$

Additional paid$-$in capital $3,6403,000$

Retained earnings $17,88025,840$

Sales $215,520311,480$

Total credits $$302,680$ $$390,440$

Additional information

$1.$ Purchased $$2,000$ of equipment in the current year.

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

$3.$ Assume no accounts receivable were written off or recovered during the year.

 

 

Required:

What amounts are reported in the operating activities section of the statement of cash flows using the direct method for the current year ended December $31,$ for the following line items?

Answer rating: 100% (QA)

To report the amounts in the operating activities section of the statement of cash flows using the d... View the full answer