Determining Operating Cash Flows-Direct Method Adjusted trial balances for Garboz Company, an industrial recycler, at December...
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Determining Operating Cash Flows-Direct Method Adjusted trial balances for Garboz Company, an industrial recycler, at December 31 of the current and prior year follow. Debits, December 31 Current Year Prior Year Cash $28,000 $25,600 Accounts receivable 26,400 24,000 Inventory 24,800 37,600 Property, plant, and equipment 80,000 76,000 Discount on bonds payable 3,600 4,000 Cost of goods sold Selling expenses 200,000 304,000 113,200 137,600 General and administrative expenses 109,600 121,040 Interest expense Income tax expense Total debits Allowance for doubtful accounts Accumulated depreciation 3,440 16,320 $605,360 2,080 48,960 $780,880 Credits, December 31 Current Year Prior Year $ 1,040 $ 880 13,200 12,000 Trade accounts payable 20,000 14,000 Income taxes payable 16,800 21,680 Deferred income tax liability 4,240 3,680 Callable bonds payable, 8% 36,000 16,000 Common stock 40,000 32,000 Additional paid-in capital 7,280 6,000 Retained earnings 35,760 51,680 Sales Total credits 431,040 622,960 $605,360 $780,880 Additional information 1. Purchased $4,000 of equipment in the current year. 2. Allocated one-third of its depreciation expense to selling expenses and the remainder to general and administrative expenses. 3. Assume no accounts receivable were written off or recovered during the year. Required What amounts are reported in the operating activities section of the statement of cash flows using the direct method for the current year ended December 31, for the following line items? Note: Do not use negative signs with your answers. a. Cash collected from customers $ 0 b. Cash paid to suppliers $ 0 c. Cash paid for interest $ 0 d. Cash paid for income taxes $ 0 e. Cash paid for selling expenses $ 0 Determining Operating Cash Flows-Direct Method Adjusted trial balances for Garboz Company, an industrial recycler, at December 31 of the current and prior year follow. Debits, December 31 Current Year Prior Year Cash $28,000 $25,600 Accounts receivable 26,400 24,000 Inventory 24,800 37,600 Property, plant, and equipment 80,000 76,000 Discount on bonds payable 3,600 4,000 Cost of goods sold Selling expenses 200,000 304,000 113,200 137,600 General and administrative expenses 109,600 121,040 Interest expense Income tax expense Total debits Allowance for doubtful accounts Accumulated depreciation 3,440 16,320 $605,360 2,080 48,960 $780,880 Credits, December 31 Current Year Prior Year $ 1,040 $ 880 13,200 12,000 Trade accounts payable 20,000 14,000 Income taxes payable 16,800 21,680 Deferred income tax liability 4,240 3,680 Callable bonds payable, 8% 36,000 16,000 Common stock 40,000 32,000 Additional paid-in capital 7,280 6,000 Retained earnings 35,760 51,680 Sales Total credits 431,040 622,960 $605,360 $780,880 Additional information 1. Purchased $4,000 of equipment in the current year. 2. Allocated one-third of its depreciation expense to selling expenses and the remainder to general and administrative expenses. 3. Assume no accounts receivable were written off or recovered during the year. Required What amounts are reported in the operating activities section of the statement of cash flows using the direct method for the current year ended December 31, for the following line items? Note: Do not use negative signs with your answers. a. Cash collected from customers $ 0 b. Cash paid to suppliers $ 0 c. Cash paid for interest $ 0 d. Cash paid for income taxes $ 0 e. Cash paid for selling expenses $ 0
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