Question: Ayayai Corp. uses the direct method to prepare its statement of cash flows. Ayayai's trial balances at December 31, 2025 and 2024 , are as


Ayayai Corp. uses the direct method to prepare its statement of cash flows. Ayayai's trial balances at December 31, 2025 and 2024 , are as follows. Additional information: 1. Ayayai purchased $5,000 in equipment during 2025 . 2. Ayayai allocated one-third of its depreciation expense to selling expenses and the remainder to general and administrative expenses. 3. Bad debt expense for 2025 was $5,000, and write-offs of uncollectible accounts totaled $4,700. Determine what amounts Ayayai should report in its statement of cash flows for the year ended December 31, 2025, 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. $
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
