Sunland. uses the direct method to prepare its statement of cash flows. Sunland trial balances at December 31, 2017 and 2016, are as follows.

	December 31
	2017	2016
Debits
Cash	$ 35,000	$ 32,000
Accounts receivable	33,000	30,000
Inventory	31,000	47,000
Property, plant, and equipment	100,000	95,000
Unamortized bond discount	4,500	5,000
Cost of goods sold	250,000	380,000
Selling expenses	141,500	172,000
General and administrative expenses	137,000	151,300
Interest expense	4,300	2,600
Income tax expense	20,400	61,200
	$756,700	$976,100

	December 31
	2017	2016
Credits
Allowance for doubtful accounts	$  1,300	$  1,100
Accumulated depreciation—plant assets	16,500	15,000
Accounts payable	25,000	15,500
Income taxes payable	21,000	29,100
Deferred tax liability	5,300	4,600
8% callable bonds payable	45,000	20,000
Common stock	50,000	40,000
Paid-in capital in excess of par	9,100	7,500
Retained earnings	44,700	64,600
Sales revenue	538,800	778,700
	$756,700	$976,100

Additional information:

1. Sunland purchased $5,100 in equipment during 2017. 

2. Sunland allocated one-third of its depreciation expense to selling expenses and the remainder to general and administrative expenses. 

3. Bad debt expense for 2017 was $5,000, and write-offs of uncollectible accounts totaled $4,800.

Instructions

Determine what amounts Sunland should report in its statement of cash flows for the year ended December 31, 2017, 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.

Answer rating: 100% (QA)

Answer a Particulars Amount 538800 Sales revenue Less Increase in accounts receivable net of writeo... View the full answer