1. Pax Corp. uses the direct method to prepare its statement of cash flows. Pax's trial balances at December 31, 2017 and 2016 are as follows:

December 31

20172016

Debits

Cash$ 40,200 $ 36,000

Accounts receivable32,000 27,000

Inventory29,680 45,000

Property, plant, & equipment72,000 75,000

Unamortized bond discount3,6004,000

Cost of goods sold220,000 345,000

Selling expenses118,000 140,000

General and administrative expenses100,100 130,000

Interest expense4,1352,500

Income tax expense14,400 41,200

$634,115 $845,700

Credits

Allowance for uncollectible accounts1,100 $1,000

Accumulated depreciation10,500 12,000

Trade accounts payable22,000 15,500

Income taxes payable18,000 24,100

Deferred income taxes6,000 4,000

8% callable bonds payable35,000 18,000

Common stock38,000 22,000

Additional paid-in capital8,100 6,500

Retained earnings57,915 52,000

Sales437,500 690,600

$634,115 $845,700

• Pax purchased $4,000 in equipment during 2017.
• Pax allocated one third of its depreciation expense to selling expenses and the remainder to general and administrative expenses. There were no write-offs of accounts receivable during 2017.

Required: For Pax's December 31, 2017 Statement of Cash Flows, answer the following questions:

a.What is cash collected from customers for December 31, 2017?

b.What is cash paid for purchases of merchandise inventory goods to be sold?

c.What is cash paid for interest?

d.What is cash paid for income taxes?

e. What is cash paid for selling expenses?