Huang Corp. uses the direct method to prepare its statement of cash flows and follows IFRS. Huang's

Question:

Huang Corp. uses the direct method to prepare its statement of cash flows and follows IFRS. Huang's trial balances at December 31, 2014, and 2013 was as follows:

Huang Corp. uses the direct method to prepare its statement

Additional information:
1. Huang purchased $5,000 of equipment during 2014.
2. Bad debt expense for 2014 was $5,000 and writeoffs of uncollectible accounts totalled $4,800.
3. Huang has adopted the policy of classifying the payments of interest as financing activities on the statement of cash flows.
Instructions
Determine what amounts Huang should report in its statement of cash flows for the year ended December 31, 2014, for the following:
(a) Cash collected from customers
(b) Cash paid to suppliers of goods and services (excluding interest and income taxes)
(c) Cash paid for interest
(d) Cash paid for income taxes

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Related Book For  book-img-for-question

Intermediate Accounting

ISBN: 978-1118300855

10th Canadian Edition Volume 2

Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield, Nicola M. Young, Irene M. Wiecek, Bruce J. McConomy

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