Question: Pharoah Corp. uses the direct method to prepare its statement of cash flows. Pharoah trial balances at December 31, 2020 and 2019. are as follows,

 Pharoah Corp. uses the direct method to prepare its statement of
cash flows. Pharoah trial balances at December 31, 2020 and 2019. are
as follows, Income tax expense \begin{tabular}{lrr} \hline Credits & & \\ \hline
Allowance for doubtful accounts & $1,300 & $1,200 \\ Accumulated depreciation-plant assets

Pharoah Corp. uses the direct method to prepare its statement of cash flows. Pharoah trial balances at December 31, 2020 and 2019. are as follows, Income tax expense \begin{tabular}{lrr} \hline Credits & & \\ \hline Allowance for doubtful accounts & $1,300 & $1,200 \\ Accumulated depreciation-plant assets & 16,300 & 14,800 \\ Accounts payable & 24,800 & 15,600 \\ Income taxes payable & 21,000 & 29,000 \\ Deferred tax liability & 5,400 & 4,700 \\ 8% callable bonds payable & 44,800 & 20,000 \\ Common stock & 50,200 & 40,000 \\ Paid-in capital in excess of par & 9,000 & 7,500 \\ Retained earnings & 45,000 & 64,300 \\ Sales revenue & 538,100 & 780,800 \\ \hline \end{tabular} Additional information: 1. Pharoah purchased $5,000 in equipment during 2020 . 2. Pharoah allocated one-third of its depreciation expense to selling expenses and the remainder to general and administrative expenses. 3. Bad debt expense for 2020 was $5,000, and write-offs of uncollectible accounts totaled $4,900. Determine what amounts Pharoah should report in its statement of cash flows for the year ended December 31, 2020, for the following items. (a) Cash collected from customers. \$ (b) Cash paid to suppliers. $ Determine what amounts Pharoah should report in its statement of cash flows for the year ended December 31, 2020, 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!