Los Lobos Corp. uses the direct method to prepare its statement of cash flows. Los Lobos?s trial balances at December 31, 2020 and 2019, are as follows.

Additional information:

1. Los Lobos purchased $5,000 in equipment during 2020.

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 2020 was $5,000, and write-off s 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, 2020, 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 2020 2019 Debits $ 35,000 $ 32,000 Cash Accounts receivable 33,000 30,000 Inventory 31,000 47,000 Property, plant, and equipment 100,000 95,000 Unamortized bond discount 4,500 5,000 Cost of goods sold Selling expenses General and administrative expenses 250,000 380,000 141,500 172,000 137,000 151,300 Interest expense Income tax expense 4,300 2,600 61,200 20,400 $756,700 $976,100 Credits $ 1,300 $ 1,100 Allowance for doubtful accounts Accumulated depreciation-plant assets Accounts payable Income taxes payable Deferred tax liability 8% callable bonds payable 16,500 15,000 15,500 25,000 21,000 29,100 5,300 4,600 45,000 20,000 Common stock 50,000 40,000 Paid-in capital in excess of par Retained earnings Sales revenue 9,100 7,500 44,700 64,600 538,800 778,700 $756,700 $976,100