Costa SA uses the direct method to prepare its statement of cash flows. Costa's trial balances at

Question:

Costa SA uses the direct method to prepare its statement of cash flows. Costa's trial balances at December 31, 2019 and 2018, are as follows.

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Additional information:

1. Costa purchased R$5,000 in equipment during 2019.

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

3. Bad debt expense for 2019 was R$5,000, and write-offs of uncollectible accounts totaled R$4,800.

4. Interest expense includes R$500 of discount amortization.


Instructions

Determine what amounts Costa should report in its statement of cash flows for the year ended December 31, 2019, 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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Related Book For  book-img-for-question

Intermediate Accounting IFRS

ISBN: 978-1119372936

3rd edition

Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield

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