Zurg Corp. uses the direct method to prepare its statement of cash flows. Zurg€™s trial balances at December 31, 2014 and 2013 are as follows.

Additional information:
1. Zurg purchased a major piece of equipment for $97,900 during 2014.
2. Zurg allocated one-half of its depreciation expense to cost of goods sold and the remainder to general and administrative expenses.
3. Bad debt expense for 2014 was $10,000 and is included in general and administrative expenses.

Instructions
Determine what amounts Zurg 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 general and administrativeexpenses.

Transcribed Image Text:

December 31 Debits Accounts receivable Property, plant, & equipment 1,205,000 ,080,000 Cost of goods sold General and administrative expenses Income tax expense $3,081,300 $2,613,600 Credits Allowance for doubtful accounts Accumulated depreciation Trade accounts payable Income taxes payable Deferred income taxes Unamortized bond premium 10% convertible bonds payable Common stock Additional paid-in capital 2,105,800