Question: Costa SA uses the direct method to prepare its statement of cash flows. Costa's trial balances at December 31, 2019 and 2018, are as follows.

Costa SA uses the direct method to prepare its statement of cash flows. Costa's trial balances at December 31, 2019 and 2018, are as follows.
December 31 2018 2019 Debits R$ 35,000 R$ 32,000 Cash 33,000 Accounts receivable 30,000 Inventory 31,000 47,000 Property

Additional information:
1. Costa purchased R$5,000 in equipment during 2019.
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 2019 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, 2019, 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.

December 31 2018 2019 Debits R$ 35,000 R$ 32,000 Cash 33,000 Accounts receivable 30,000 Inventory 31,000 47,000 Property, plant, and equipment 100,000 95,000 Cost of goods sold 250,000 380,000 Selling expenses 141,500 172,000 General and administrative expenses 137,000 151,300 Interest expense 4,300 2,600 Income tax expense 20,400 61,200 R$752,200 R$971,100 Credits R$ 1,300 R$ 1,100 Allowance for doubtful accounts Accumulated depreciation 16,500 13,500 Trade accounts payable 25,000 17,000 Income taxes payable 21,000 29,100 Deferred income taxes 5,300 4,600 8% callable bonds payable 40,500 15,000 40,000 Share capital-ordinary 50,000 Share premium-ordinary 9,100 7,500 Retained earnings 44,700 64,600 Sales revenue 538,800 778,700 R$752,200 R$971,100

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