Question: Los Lobos Corp. uses the direct method to prepare its statement of cash flows. Relevant balances for Los Lobos at December 31, 2014 and 2013,

 Los Lobos Corp. uses the direct method to prepare its statement

Los Lobos Corp. uses the direct method to prepare its statement of cash flows. Relevant balances for Los Lobos at December 31, 2014 and 2013, are as follows December 31 2014 2013 Cash Accounts receivable Inventory Property, plant, & equipment Unamortized bond discount Cost of goods sold Selling expenses General and administrative expenses Interest expense Income tax expense $35,320$32,080 33,330 30,080 31,01047,250 105,240 92,200 5,020 252,110 379,900 141,660 171,680 136,900 151,270 4,6502,510 20,090 61,550 $764,500 $973.540 4,190 Allowance for doubtful accounts Accumulated depreciation-plant assets Accounts payable Income taxes payable Deferred income taxes 8% callable bonds payable Common stock Paid-in capital in excess of par Retained earnings Sales revenue $1,250 16,86313,710 16,900 9,93029,100 4,170 44,740 21,280 38,400 8,9007,900 44480 04,840 343.457 775,990 $764,500 $973,540 $1,950 25,500 5,480 53,200 Additional information: 1. Los Lobos purchased $13,040 in equipment during 2014 2. Los Lobos allocated one-third of its depreciation expense to selling expenses and the remainder to general and administrative expenses 3. Bad debt expense for 2014 was $4,580, and write-offs of uncollectible accounts totaled $3,880 Determine what amounts Los Lobos should report in its statement of cash flows for the year ended December 31, 2014, 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. Click if you would like to Show Work for this question: Open Show Work

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!