Los Lobos Corp. uses the direct method to prepare its statement of cash flows. Los Lobos’s trial balances at December 31, 2025 and 2024, are as follows.

Additional information:

1. Los Lobos purchased $5,000 in equipment during 2025.

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 2025 was $5,000, and write-offs of uncollectible accounts totaled $4,800.

Instructions

Determine what amounts Los Lobos should report in its statement of cash flows for the year ended December 31, 2025, 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.

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Debits Cash Accounts receivable Inventory Property, plant, and equipment Unamortized bond discount Cost of goods sold Selling expenses General and administrative expenses Interest expense Income tax expense Credits Allowance for doubtful accounts Accumulated depreciation-plant assets Accounts payable Income taxes payable Deferred tax liability 8% callable bonds payable Common stock Paid-in capital in excess of par Retained earnings Sales revenue December 31 2025 $ 35,000 33,000 31,000 100,000 4,500 250,000 141,500 137,000 4,300 20,400 $756,700 $ 1,300 16,500 25,000 21,000 5,300 45,000 50,000 9,100 44,700 538,800 $756,700 2024 $32,000 30,000 47,000 95,000 5,000 380,000 172,000 151,300 2,600 61,200 $976,100 $ 1,100 15,000 15,500 29,100 4,600 20,000 40,000 7,500 64,600 778,700 $976,100