Question: Waubansee Corp uses the direct method to prepare its statement

Waubansee Corp. uses the direct method to prepare its statement of cash flows. Waubansee’s trial balances at December 31, 2010 and 2009 are shown below.

Additional information:
1. Waubansee purchased $5,000 in equipment during 2010.
2. Waubansee allocated one-third of its depreciation expense to selling expenses and the remainder to general and administrative expenses.
3. Bad debt expense for 2010 was $5,000, and write-offs of uncollectible accounts totaled $3,800.
4. Interest expense includes $500 of discount amortization.

Determine what amounts Waubansee should report in its statement of cash flows for the year ended December 31, 2010, 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 sellingexpenses.

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  • CreatedJune 17, 2013
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