Question: Carla SA uses the direct method to prepare its statement of cash flows. Carla's trial balances at December 31, 2022 and 2021, are as follows.

Carla SA uses the direct method to prepare its statement of cash flows. Carla's trial balances at December 31, 2022 and 2021, are as follows.

December 31

Debits

2022

2021

Cash

R$38,000

R$33,000

Accounts receivable

35,000

30,000

Inventory

31,000

49,000

Property, plant, & equipment

102,000

97,000

Cost of goods sold

259,000

381,000

Selling expenses

144,500

175,000

General and administrative expenses

138,000

152,300

Interest expense

4,300

2,600

Income tax expense

20,400

61,200

R$772,200

R$981,100

Credits

Allowance for doubtful accounts

R$1,200

R$1,300

Accumulated depreciation

16,900

13,900

Accounts payable

25,500

17,100

Income taxes payable

23,500

29,900

Deferred income taxes

6,300

5,600

8% callable bonds payable

40,500

15,000

Share capitalordinary

50,000

40,000

Share premiumordinary

9,100

7,500

Retained earnings

44,700

73,600

Sales revenue

554,500

777,200

R$772,200

R$981,100

Additional information:

1. Carla purchased R$5,000 in equipment during 2022.
2. Carla allocated one-third of its depreciation expense to selling expenses and the remainder to general and administrative expenses.
3. Bad debt expense for 2022 was R$5,000, and write-offs of uncollectible accounts totaled R$5,100.
4. Interest expense includes R$500 of discount amortization.

Determine what amounts Carla should report in its statement of cash flows for the year ended December 31, 2022, 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

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!