How to calculate the cash flows using indirect method rather than direct method

7E23-9 (SCF-Direct Method) Costa Corp. uses the direct method to prepare its statement of cash flows. Costa's trial balances at December 31, 2015 and 2014, are as follows. Exercise December 31 2015 2014 Debits Cash Accounts receivable Inventory Property, plant, and equipment Cost of goods sold Selling expenses General and administrative expenses Interest expense Income tax expense R$ 35,000 R$ 32,000 30,000 47,000 95,000 380,000 172,000 151,300 2,600 61,200 R$752,200 R$971,100 33,000 31,000 100,000 250,000 41,500 137,000 4,300 20,400 Credits R$ 1,300 R$ 1,100 13,500 17,000 29,100 4,600 15,000 40,000 7,500 64,600 778.700 R$752,200 R$971,100 Allowance for doubtful accounts Accounts payable Income taxes payable Deferred income taxes 896 callable bonds payable Share capital-ordinary Share premium-ordinary Retained earnings Sales revenue 16,500 25,000 21,000 5,300 40,500 50,000 9,100 44,700 538,800 Additional information: 1. Costa purchased R$5,000 in equipment during 2015. 2. Costa allocated one-third o f its depreciation expense to selling expenses and the remainder to general and administrative expenses. 3. Bad debt expense for 2015 was R$5,000, and write-offs of uncollectible accounts totaled R$3,800 4. Interest expense includes R$500 of discount amortization. Instructions Determine what amounts Costa should report in its statement of cash flows for the year ended December 31, 2015, for the following items. (a) Cash collected from customers. (b) Cash paid to suppliers. (c) Cash paid for interest (d) Cash paid for income taxes. (e) Cash paid for selling expenses. 7E23-9 (SCF-Direct Method) Costa Corp. uses the direct method to prepare its statement of cash flows. Costa's trial balances at December 31, 2015 and 2014, are as follows. Exercise December 31 2015 2014 Debits Cash Accounts receivable Inventory Property, plant, and equipment Cost of goods sold Selling expenses General and administrative expenses Interest expense Income tax expense R$ 35,000 R$ 32,000 30,000 47,000 95,000 380,000 172,000 151,300 2,600 61,200 R$752,200 R$971,100 33,000 31,000 100,000 250,000 41,500 137,000 4,300 20,400 Credits R$ 1,300 R$ 1,100 13,500 17,000 29,100 4,600 15,000 40,000 7,500 64,600 778.700 R$752,200 R$971,100 Allowance for doubtful accounts Accounts payable Income taxes payable Deferred income taxes 896 callable bonds payable Share capital-ordinary Share premium-ordinary Retained earnings Sales revenue 16,500 25,000 21,000 5,300 40,500 50,000 9,100 44,700 538,800 Additional information: 1. Costa purchased R$5,000 in equipment during 2015. 2. Costa allocated one-third o f its depreciation expense to selling expenses and the remainder to general and administrative expenses. 3. Bad debt expense for 2015 was R$5,000, and write-offs of uncollectible accounts totaled R$3,800 4. Interest expense includes R$500 of discount amortization. Instructions Determine what amounts Costa should report in its statement of cash flows for the year ended December 31, 2015, 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