(SCF—Direct Method) Los Lobos Corp. uses the direct method to prepare its statement of cash flows. Los Lobos’s trial balances at December 31, 2007 and 2006, are as follows.

Additional information:
1. Los Lobos purchased $5,000 in equipment during 2007.
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 2007 was $5,000, and writeoffs 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, 2007, for the following items.
1. Cash collected from customers. 4. Cash paid for income taxes.
2. Cash paid to suppliers. 5. Cash paid for selling expenses.
3. Cash paid for interest.

December 31 2007 2006 Debits Cash $ 35,000 $ 32,000 Inventory Accounts receivable Property, plant, & equipment 33,000 30,000 31,000 47,000 100,000 95,000 Unamortized bond discount 4,500 5,000 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 $756,700 $976,100 Credits Allowance for doubtful accounts $ 1,300 $ 1,100 Accumulated depreciation 16,500 15,000 Trade accounts payable 25,000 15,500 Income taxes payable 21,000 29,100 Deferred income taxes 5,300 4,600 8% callable bonds payable 45,000 20,000 Common stock 50,000 40,000 Additional paid-in capital 9,100 7,500 Retained earnings 44,700 64,600 Sales 538,800 778,700 $756,700 $976,100